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Home My WebLink About01-03215 j' ' ""' < , -' ^ ','" ~fi"j, SYDNEY D. CAPLAN, Plaintiff v. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 01- 3215 ~-rob- JAMES J. TOULOUMES, JR., FROSO I. TOULOUMES, CONSTANTINE G. J. TOULOUMES, JAMES J. TOULOUMES, III, and JFK-T GROUP, INC., CIVIL ACTION - LAW PRAECIPE FOR WRIT OF SUMMONS TO THE PROTHONOTARY OF SAID COURT: Please issue a writ of summons in the above-captioned action. Writ of Summons shall be issued and forwarded to ( ) Attomey (X) Sheriff McNEES, WALLACE & NURICK O~7. :James P. DeAngelo Supreme Court 1.0. 62377 100 Pine Street, P.O. Box 1166 Harrisburg, PA 17108-1166 717-232-8000 Attomeys for Plaintiff Date: May 25, 2001 ~ ~. T~~fU/,J"-' 3~8 W~ M,.,I. ~ Rd. rn~~ ~,PI/- /7~~.s- cf~~-r~ ~ ~c uJ~ &lJ ~ t2J.. ~ 7-'1 "(f ~I f'A /7(J" S- ~'L....l~:"'" J';1. ~. (~ a w..e.:t;. @......::..,. .&+. ~ ~ ~I ft1- /7d(PS"" fr.".....-.J9-.r~,.m: 'cJ.7;). ~ >>'AW-e. 'IJ~.............A.-t;...IJw', Ph '7D $" YK-r ~/~~' 0/.. I{~" I(.~.J,.I"-t....x -'I Sf ">1. dJ. I tt' .u: f!.~~, Ph J7~ If , ," ' - .~ - ~ '.' '.,^ ~," ':liill,' SYDNEY D. CAPLAN, Plaintiff v. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. oJ. 3.:uS ~ "TLo- JAMES J. TOULOUMES, JR.. FROSO I. TOULOUMES. CONSTANTINE G. J. TOULOUMES. JAMES J. TOULOUMES, III. and JFK.T GROUP, INC., CIVIL ACTION - LAW WRIT OF SUMMONS TO: JAMES J. TOULOUMES, JR.. FROSO I. TOULOUMES. CONSTANTINE G. J. TOULOUMES. JAMES J. TOULOUMES, III, and JFK-T GROUP, INC. YOU ARE HEREBY NOTIFIED that Sydney D. Caplan, Plaintiff, has commenced an action against you. Date: ~ :15, JAv{ (im7,. R -\~ w-. Curt Long, Prothon r/ By: Q'Y..L~ 0. '1h..,p,: , (Deputy) Seal of the Court " -^~' , ~~-;'M~~~a~,! I I I t~~ ~~ (co ~~ i t r j ~ .,. .. ~ 2 C;) (" -i'1 ~ To :.~'~ :'0._ ""0(;:; "'" :::~~, I'T1[OO ....:; z,:;;:' N Vie;., <..11 / 2t-;i ..~," -1. " --0 ;-,~ r-) <- ~O 00- :;:',1"1\ ~C' r:~' Pc:: -" ~ :.n ~ '" ~ ~ .w ~~ ..... ~ <lo ~ "- ... ~ ..., , . " - . ~ I ~".'. ,>>> ",", .;';''---'';>~:'~' ," ';'~k ~;! SYDNEY D. CAPLAN, Plaintiff v. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 01-3215 CIVIL TERM JAMES J. TOULOUMES, JR.. FROSO I. TOULOUMES, CONSTANTINE G. J. TOULOUMES. JAMES J. TOULOUMES. III, and JFK-T GROUP, INC., PRAECIPE FOR ENTRY OF APPEARANCE TO: CURTLONG,PROTHONOTARY Please enter my appearance in the above captioned case as co-counsel for Plaintiff Sydney D. Caplan. James P. DeAngelo, Esquire, of McNees, Wallace & Nurick continues his appearance for Plaintiff. ~kJ~ Edward W. Rothman Supreme Court I.D. 7244 1435 Appletree Road Harrisburg. PA 17110 717-236-6687 Attorney for Plaintiff Date: July 12, 2001 ~" _. " ~~~ , I -""-' --^ . *^'- i':l::A.'L CERTIFICATE OF SERVICE I certify that I have this date served the foregoing document on the parties listed below by first class mail, postage prepaid, which service satisfies the requirements of Pa. R. Civ. P. 440. Robert L. Knupp, Esq. Knupp, Kodak & Imblum, P.C. 407 North Front Street Harrisburg, PA 17101 ~[;)~ Edward W. Rothman Dated: July 12, 2001 ~~ " .~ " >, .'" '~ ~, 1m'" 'f'(',ii' . 0 {::"". ., C \ r1~f;, r;::::: , -, - ~ c. , . UJ , (... C<. . ".J yc.: -:-, "]~C:" , .. , ...::~ /'-. , c, ~:S:' t,) 'V ..~ :':;1 (Ii :< . " - n lJ -, ,-I.;. Cr. , " ~', ~'--"~ii!fJ; SHERIFF'S RETURN - OUT OF COUNTY CASE NO: 2001-03215 P COMMONWEALTH OF PENNSYLVANIA, COUNTY OF CUMBERLAND CAPLAN SYDNEY D VS TOULOUMES JAMES J JR ET AL R. Thomas Kline , Sheriff or Deputy Sheriff who being duly sworn according to law, says, that he made a diligent search and and inquiry for the within named DEFENDANT , to wit: TOULOUMES JAMES JIll but was unable to locate Him in his bailiwick. He therefore deputized the sheriff of DAUPHIN County, Pennsylvania, to serve the within WRIT OF SUMMONS On July 6th , 2001 , this office was in receipt of the attached return from DAUPHIN Sheriff's Costs: DOCketing Out of County surcharge Dep Dauphin Co 6.00 9.00 10.00 29.25 .00 54.25 07/06/2001 MCNEES WALLACE soa;~~ R~homas Kline Sheriff of Cumberland County & NURICK Sworn and subscribed to before me this 13't:- day of CH ..:J",,} A.D. ~ (;>""'rIA.d. ~ prothondt "~~ -.."", ~ ~" -.~ " ,- -",., ""-';:",' SHERIFF'S RETURN - REGULAR CASE NO: 2001-03215 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND CAPLAN SYDNEY D VS TOULOUMES JAMES J JR ET AL RICHARD SMITH: , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within WRIT OF SUMMONS was served upon TOULOUMES JAMES J JR the DEFENDANT , at 2009:00 HOURS, on the 8th day of June , 2001 at 3 W PINE ST MT HOLLY SPRINGS, PA 17065 JAMES J TOULOUMES JR by handing to a true and attested copy of WRIT OF SUMMONS together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing Service Affidavit Surcharge 18.00 8.68 .00 10.00 .00 36.68 So Answers: ~~~~~ R. Thomas Kline 07/06/2001 MCNEES WALLACE K Sworn and Subscribed to before By: me this JJ"f!:::: day of ~~ 4(Je) I A.D. ~f.A-. D. 'Nt..;, lO~. prothonota:r:y , - -,h , '''-'*''.4!WJ' SHERIFF'S RETURN - REGULAR CASE NO: 2001-03215 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND CAPLAN SYDNEY D VS TOULOUMES JAMES J JR ET AL RICHARD SMITH , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within WRIT OF SUMMONS was served upon TOULOUMES CONSTANTINE G J the DEFENDANT , at 2009:00 HOURS, on the 8th day of June , 2001 at 3 W PINE ST MT HOLLY SPRINGS, PA 17065 CONSTANTINE TOULOUMES by handing to a true and attested copy of WRIT OF SUMMONS together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing Service Affidavit Surcharge So Answers: 6.00 .00 .00 10.00 .00 16.00 ~~~ R. Thomas Kline 07/06/2001 MCNEES WALLACE Sworn and Subscribed to before By: me this 13t:: day of ~ ~I A.D. (7. ""C o. nA.~i, ~ ~ ~btfionotary """'" '~ ~ L < .~- .' ~n - . " ., "~ ,-- ~, l' SHERIFF'S RETURN - REGULAR CASE NO: 2001-03215 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND CAPLAN SYDNEY D VS TOULOUMES JAMES J JR ET AL CPL MICHAEL,B~,ICK , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within WRIT OF SUMMONS was served upon JFK-T GROUP INC the DEFENDANT , at 1815:00 HOURS, on the 31st day of May , 2001 at C/O KOSTA'SIljESTAURANT CAMP HILL, FA 17011 451 N 21ST ST by handing to FROSO TOULOUMES a true and attested copy of WRIT OF SUMMONS together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing Service Affidavit Surcharge So Answers: 6.00 .00 .00 10.00 .00 16.00 ~~~~ ' U R. Thomas Kl~ne Sworn and Subscribed to before me this 1,Jt!::- day of ~ auv..L A.D. (l~O /JudO, ',A~. ~t"othonotary 07(06/2001 MCNEE' ~E ~ BY:~ Deputy Sh iff , , ~"" - ,n ml" ~~: ~.~ ';"1-' SHERIFF'S RETURN - REGULAR CASE NO: 2001-03215 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND CAPLAN SYDNEY D VS TOULOUMES JAMES J JR ET AL CPL ~ICHAEL BARRICK , Sheriff or Deputy Sheriff of Cumberland County,Pennsy1vania, who being duly sworn according to law, says, the within WRIT OF SUMMONS was served upon TOULOUMES FROSO I the DEFENDANT at 1815:00 HOURS, on the 31st day of May , 2001 at 451 N 21ST ST CAMP HILL, PA 17011 by handing to a true and attested copy of WRIT OF SUMMONS together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing Service Affidavit Surcharge 6.00 9.30 .00 10.00 .00 25.30 So Answers: ~;;~d:tC~ R. Thomas Kline Sworn and Subscribed to before me this J3t;!; day of ~ dAnJl A.D. ~o{ton~"'~Y 07/06/2001 MC>OE"" WALLACE · NURI~ .P f) BY:.~~ ,j ~ L "'- "'''"~""u.,<) In The Court of Common Pleas of Cumberland County, Pennsylvania sydney D. Caplan VS. James J. TOuloumes Jr. eta1 SERVE: Janes J. Touloumes III No. 2001 3215 civil Now, 5/29/01 , I, SHERIFF OF CUMBERLAND COUNTY, P A, do hereby deputize the Sheriff of Dauphin County to execute this Writ, this deputation being made at the request and risk of the Plaintiff. r~ ~o/.t:#,,~ Sheriff of Cumberland County. P A Affidavit of Service , Now, .20_, at 0' clock M. served the within upon at by handing to a copy of the original and made known to the contents thereof. So answers, Sheriff of County, PA Sworn and subscribed before methis_dayof ,20_ COSTS SERVICE MILEAGE AFFIDAVIT $ $. , ,;'Iil,Ull!!!fJli,,_ ~. ';' ,~, ~ , O'~IJPL." "'!,.~ '7/" COu ::'~U'lf" ;.""IFF'S OF' N", ' 11'1 C I . l", !('~-"~.}:,.r/~(r1' c .rfCt ~i '.J/.., OU~'I ~'- .f,.. ~ :'. ., f~:!(" . . '.. ,~, ,( 0, ""-"'J _ /1;j r 30 A~, 111-, 8: '19 R~ efj ~:t::{j - .,- ~ . ~- .....,.~" '--'i ,~ ' - ="=<~ ;",Ii '-,", " '~ - -'-"\" @iiite af tlr.e $4~riff Mary Jane Snyder Real Estate Deputy William T. Tully Solicitor 1. Daniel Basile Chief Deputy Michael W. Rinehart Assistant Chief Deputy Dauphin County HaIrisburg, Pennsylvania 17101 ph: (717) 255-2660 fax: (717) 255-2889 Jack Lotwick Sheriff Commonwealth of Pennsylvania CAPLAN SYDNEY D vs County of Dauphin TOULOUMES JAMES J III Sheriff's Return No. 1535-T - -2001 OTHER COUNTY NO. 2001-3215 I, Jack Lotwick, Sheriff of the County of Dauphin, State of Pennsylvania, qo hereby certify and return, that I made diligent search and inquiry for TOULOUMES JAMES J III the DEFENDANT named in the within SUMMONS/PRAECIPE/INTER/REQ FOR PROD DOC and that I am unable to find him/her in the county of Dauphin, and therefore return same NOT FOUND, June 29, 2001 NEED A BETTER ADDRESS FOR DEFENDANT. NUMEROUS CARDS WERE LEFT AT RESIDENCE NO RESPONSE. A NEIGHBOR SAYS A COUPLE LIVES AT 272 SUE DR., HUMMELSTOWN. EXPIRED 6/25/01. Sworn and subscribed to fi;M _ ~i. "~:'~:; Sheriff of Dauphin County, Fa. before PROTHONOTARY By Deputy Sheriff Sheriff's Costs: $29.25 PD 06/07/2001 RCPT NO 150737 0'= " , ,-.. . 0lI'" SYDNEY D. CAPLAN, Plaintiff v. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 01-3215 CIVIL TERM JAMES J. TOULOUMES, JR., FROSO I. TOULOUMES. CONSTANTINE G. J. TOULOUMES. JAMES J. TOULOUMES, Ill, and JFK-T GROUP, INC., PRAECIPE TO REISSUE WRIT OF SUMMONS TO THE PROTHONOTARY: PLEASE reissue the attached Writ of Summons for service upon Defendant James J. Touloumes, III. Attorney Robert L. Knupp, 407 N. Front Street, Harrisburg, has agreed to accept service on behalf of Defendant James J. Touloumes, III. McNEES WALLACE & NURICK LLC James P. DeAngelo Supreme Court \.D. 62377 100 Pine Street, P.O. Box 1166 Harrisburg, PA 17108-1166 717-232-8000 Attorneys for Plaintiff Date: July 30, 2001 - i', ~ ~ - Q c... ,;r; n';;; ~,_. (',;-J ~. ~.~'~.' :'_,.;',; ~:[; -., =< ,,-" 0.;;- ~ ~~ .~ " ';", XJ['-I" c:., ;:..) c.:..: ;-~'-' J"";; _':.,1 -< ....>i;-t.t... - - , .. -ri",.'" -,.w' SYDNEY D. CAPLAN, Plaintiff v. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 01-3215 CIVIL TERM JAMES J. TOULOUMES, JR., FROSO I. TOULOUMES, CONSTANTINE G. J. TOULOUMES, JAMES J. TOULOUMES, III, and JFK-T GROUP, INC., JURY TRIAL DEMANDED NOTICE You have been sued in court. If YOU wish to defend against the claims set forth In the followina paoes, YOU must take aetion within twenty (,20) days after this complaint and notice are served, bv enterina a written appearance personallv or bV attorney and filing in writing with the court vour.defenses or obiections to the claims set forth aQainst YOU. You are warned that if YOU fail to do so the case may proceed without vou and a iudament may be entered against YOU by the court without further noticefor any money claimed in the complaint orforany other cl.almor relief reauested bv the; plaintiff. You may lose money or orooerty or other riahts imoortant to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER ~ CANNOT AFFORD ONE! GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATION 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 AVISO USTED HA SIDO DEMANDADO/A en corte. SI usted desea defenderse de las demand as .que se presenta" mas adelante en las siguientes paginas, debe tomar accion dentro de los proximos veinte (20) dias despues de la notificacion de esta Demanda y Aviso radicando personalmente 0 por medio de un abogado una comparecencia escrita y radicando en la Corte por escrito sus defensas de, y objecciones a, las demandas presentadas aqui en contra suya. Se Ie advlerte de que 51 usted falla de tomar accion como se describe anteriormente. el caso puede proceder sin usted y un fallo por cualquier suma de dinero reclamada en la demanda 0 cualquier otra reclamacion 0 remedlo solicitado por el demandante puede ser dietado en contra ~ ~, ~'~ '..;,; ",'-~~ . ,..- "&it,!,!-- suya por Is Corte sin mas aviso adicional. Usted puede perder dinero 0 propiedad u otros derechos importantes para usted. USTED DEBE LLEVAR ESTE DOCUMENTO A SU ABODAGO IMMEDIATAMENTE. SI USTED NO TIENE UN ABOGADO 0 NO PUEDE PAGARLE A UNO, LLAME 0 VAYA A LA SIGUIENTE OFICINA PARA AVERIGUAR DONDE PUEDE ENCONTRAR ASISTENCIA LEGAL. CUMBERLAND COUNTY BAR ASSOCIATION 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 Respectfully submitted, McNEES, WALLACE & NURICK By A. / ~ , James P. DeAngelo Supreme Court I.D. 62377 Debra P. Fourlas Supreme Court 1.0. 62047 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 717-232-8000 Attorneys for Plaintiff Date: November 29, 2001 SYDNEY D. CAPLAN, Plaintiff v. JAMES J. TOULOUMES, JR., FROSO I. TOULOUMES. CONSTANTINE G. J. TOULOUMES, JAMES J. TOULOUMES, III, and JFK-T GROUP, INC., - (;-~' ,~- "liJlii::t-;U, , "P .. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 01-3215 CIVIL TERM ACCEPTANCEOFSER~CE I accept service of the Writ of Summons on behalf of Defendant James J. Touloumes, III, and certify that I am authorized to do so. Dated: M j ~ ').."" I ~~ -~bert L. K~, s. Knupp"-Kodak ~ 1~ ~L 407 North Front Street J P. O. Box 11848 Harrisburg, PA 17108-1848 (717) 238-7151 " ~ . ~." .' " '~;' K'~"';<! "r,ttJ. r. i 0 .~ ".. .... c:: ~.f1 :n I~ ~ . r- I :"t? N r:)CJ ~ 'T,-r. ''-:!J J~ ~~ ra <::> ~ ~ 0<: - .....- -- - - ,.., ,.., .... - ""' - - - ,,- , "~" '" "'~\;t,t,~ . .. SYDNEY D. CAPLAN, Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 01-3215 CIVIL TERM 'v. JAMES J. TOULOUMES, JR., EFFRONSINII. TOULOUMES alkla FROSO I. TOULOUMES, CONSTANTINE G. J. TOULOUMES, JAMES J. TOULOUMES, III, and JFK-T GROUP, INC., JURY TRIAL DEMANDED COMPLAINT The Parties 1. Plaintiff, Sydney D. Caplan, is an adult individual residing at 4078 Greystone Drive, Harrisburg, Pennsylvania. 2. Defendants James J. Toufournes, Jr. and Efftonsini I. Touloumes alkla Froso I. Touloumes are husband and wife and are adult individuals residing at 328 West " Old York Road, South Middleton Township, Cumberland County, Pennsylvania. 3. Defendant Constantine G. J. Touloumes is an adult individual residing at 3 West Pine Street, Mount Holly Springs, Cumberland County, Pennsylvania. 4. Defendant James J. Touloumes, III is an adult individual believed to reside at 272 Sue Drive, Humrnelstown, Dauphin County, Pennsylvania. 5. James J. Toulournes, Jr. and Effronsini I. Touloumes a/kla Froso I. Touloumes are the parents of Constantine G. J. Touloumes and Jarnes J. Toulournes, III. 6. Defendant JFK-T Group, Inc. ("JFK-T") is a Pennsylvania corporation d/b/a Kosta's, a restaurant with its prirnary place of business in East Pennsboro - 'Il_ .~ "0 ':'.,,-,:;\.I L '~-,~ :-~I:. - Township, Cumbet1and County, Pennsylvania and having a street address of 451 North 21st Street, CarnpHiII, PA 17011 (the "Real Property"). 7. Upon information and belief, the individual Touloumeses are all the officers, directors,and shareholders of JFK-T, each owning a 25% interest in JFK-T. 8. The individual T ouloumeses are the owners of the Real Property on which Kosta's is located, and lease the Real Property to JFK-T. The Loans 9. On various occasions beginning in 1995, the individual Touloumeses approached Plaintiff about advancing working capital for Kosta's and otherwise helping with financing for Kosta's. 10. At Defendants' request, Plaintiff provided funding to JFK-T and the individual Touloumeses as follows: a. Between July 17,1996 and June 2,1999, Plaintiff provided cash loans totaling $307,250.00, as listed in Exhibit A attached hereto and incorporated herein; b. Since October 10, 1995, Plaintiff has rnade, and continues to make, interest payments on Loan No.1 01-875-0009417 from Mellon Bank; as of January 10, 2001, said interest payments, which are continuing to accrue monthly, totaled $21,090.41, as listed on Exhibit B attached hereto and incorporated herein; c. Pursuant to a Guaranty Agreement and a Pledge Agreement dated August 28,1995, Plaintiff guaranteed $300,000 of a mortgage note dated August 28, 1995, owed by Defendants to Commerce Bank, as demonstrated by Exhibits 2 - .~ - , - -~ > , . ~ ' - .. ". l~.i ." ~~~L C (the Guaranty Agreement), 0 (the Pledge Agreement), and E (the mortgage note) attached hereto and incorporated herein; d. On or about June 26, 1998, Plaintiff posted interest-bearing account no. 410160207 at Cornmerce Bank as an overdraft checking protection/cash res.erve account for Defendants' benefit under their loan no. 510021454, as amended, as shown on Exhibit F attached hereto and incorporated herein; and to date, Defendants have drawn approximately $25,000 on this account; e. On or about July 22, 1998, Plaintiff substituted himself for the Defendants as the primary obligor to Commerce Bank under a prior line of credit loan to Defendants on which Plaintiff had previously been a guarantor based on a pledge of securities; the current loan, No. 2776595, shown on Exhibit G attached hereto and Incorporated herein, is in the principal amount of $249,406.97, which includes more than $143,630.70 of additional advances made by Commerce to Defendants subsequent to July 22, 1998, some of which was deposited into Kosta's general operating accounts and some of which was used to make payrnents on the mortgage to Comrnerce Bank for the Real Property on which Kosta's is located, which Real Property is owned by the individual Touloumeses and on which mortgage the mortgagors and primary obligors are the individual Touloumeses; f. Since February 4, 1999, Plaintiff has made, and continues to make, interest payments on Loan No. 2776595 from Comrnerce Bank; as of November 3 , , '-M~. 'j!dil~_' 6, 2001 said interest payments, which are continuing to accrue monthly, totaled $72,252;69, as listed on Exhibit H attached hereto and incorporated herein. 11. All of the aboye referenced advances and loans were made at the request of the individual Touloumeses. 12. On various dates, Defendants tendered checks to Plaintiff as evidence of part of their indebtedness, requesting that Plaintiff hold the checks pending instructions from Defendants to deposit them for collection. 13. When Defendants tendered the aforernentioned checks, they advised - Plaintiff that the checks were not presently "good," i.e., Defendants did not then have sufficient funds to cover the checks, but that they would advise Plaintiff when they had ~ sufficient funds to cover the checks; upon information and belief, the checks have never been "good." - 14. Defendants have repeatedly acknowledged their indebtedness and made prornises to Plaintiff to begin making payments, but no payments have been made. 15. Repayment of all amounts loaned is presently due and owing. 16. Plaintiff has demanded repay!"ent of the loans from Defendants, but Defendants have failed or refused to repay the amounts owed. Piercing the Corporate Veil 17. JFK-T is a sham corporation which is merely a fa~de for the operations of its shareholders, the individual Toulourneses. 18. JFK-T has been, since its inception, grossly undercapitalized. Kosta's has operated with virtually no working capital and its working checking account has been chronically substantially overdrawn, necessitating the borrowing of to pay operating . 4 - - - " . ",~.'. '.' , " ::L.. ",' ... ~(,; ~ expenses; on multiple occasions it was unable to meet its payroll from its payroll account. 19. JFK-Thas not paid dividends in the regular and ordinary course of business; rather, JFK-T simply advances funds to the individual Touloumeses on demand, without regard to (i) whether JFK-T is solvent, (Ii) whether the advances are a proper use of corporate funds, and (iii) whether the advances reflect the share interests of the shareholders. 20. JFK-T has failed to maintain proper corporate records. 21. The officers and directors of JFK-T do not actually function. 22. One or more of the shareholders have used assets of the corporation for personal interests or expenses, including, but not limited to: a. Payment of a student loan; b. Withdrawing rnoney from the corporation for personal use; c. Channeling funds borrowed from Plaintiff by drawing on Plaintiff's Commerce Bank line of credit No. 2776595, to pay on the Commerce Bank rnortgage owed by the individual shareholders; d. Paying down the shareholders' mortgage with corporate funds, while the corporation was not paying its own debts; e. Causing the corporation to advance money to James J. Touloumes, Jr. d/b/a T. Jimmy's Place for use in another restaurant solely owned by him; f. Making payments from Kosta's operating account to or for T. Jimmy's Place. - - - 5 . , -~ ~:Jl~"'tm 23. One or more of the shareholders have commingled corporate and personal funds and affairs by, inter alia: . a. Writing corporate checks to themselves for cash; b. Obtaining a Commerce Bank loan in their individual names for use by JFK-T in purchasing the fixtures and equipment, leasehold irnprovements, liquor license, and inventory of the restaurant which became Kosta's (formerly Casa Rillo); .~ c. Channeling funds borrowed from Plaintiff by drawing on Plaintiffs Commerce Bank line of credit No. 2776595, both to make deposits in Kosta's general operating account and to pay on the Commerce Bank mortgage owed by ~ , the individual shareholders. - 24. Because the corporation is merely the alter ego of the shareholders, the indiYidual shareholders are personally, jointly and severally liable for the debts of JFK-T. Count I - Breach of Contract 25. The averments of paragraphs 1-24 are incorporated herein by reference. 26. Defendants entered into a binding oral agreement under which Plaintiff provided funds to them as described above, and they agreed to repay all amounts loaned. 27. Defendants currently are jointly and severally indebted to Plaintiff in the amount of $675,000.85 plus interest. WHEREFORE. Plaintiff demands judgment against Defendants, jointly and seyerally, in the amount of $675,000.85 plus interest, costs of suit, and such other and further relief as the Court deems just. 6 "' "" .u" ~~-~r"\f , - - Count II - Promissory EstoDDel 28. The averments of paragraphs 1-24 and 27 are incorporated herein by reference. 29. Defendants requested loans from Plaintiff and promised repayment of such loans, which promises were intended to, and did, induce Plaintiff to make the loans to his financial detriment. 30. Defendants accepted the loans provided by Plaintiff. 31. Defendants acknowledged their debt to Plaintiff. 32. Defendants are estopped from denying their debt to Plaintiff. WHEREFORE, Plaintiff demands judgment against Defendants, jointly and severally, in the amount of $675,000.85 plus interest, costs of suit, and such other and further relief as the Court deerns just. Count 11I- Uniust Enrichment 33. The averments of paragraphs 1-24 and 27 are incorporated herein by reference. 34. Defendants received substantial monetary benefits from Plaintiff. 35. Plaintiff provided financial benefits to Defendants with the expectation of being repaid, and Defendants were aware of Plaintiffs expectation of repayment. 36. Defendants will be unjustly enriched if they are not required to repay their debt to Plaintiff. -. - - - 7 ~,~, - " -" I """,,",..<..,,'. -'-."~'7'JJlei:~:~;' WHEREFORE, Plaintiff dernands judgment against Defendants, jointly and severally, in the amount of $675,000.85 plus interest, costs of suit, and such other and further relief as the Court deems just. - Date: November If, 2001 - - McNEES WALLACE & NURICK LLC By L~p~~ " James p, DeAngelo Supreme Court 1.0. 62377 Debra P. Fourlas Supreme Court 1.0. 62047 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 717-232-8000 Attorneys for Plaintiff 8 .".."'~" ,,'~-- "~"'-'=M llf;j;!""' -.....w ~....;.'" - ~ ',.- . ~ "", " MCNEES.WALLACE.NURICk2 ID:717-237-5300 NOV 09'01 15:55 No.012 P.02 VERIFICATION Subject to the penalties of 18 Pa. C.S.A. S4904. relating to unsworn falsification to authorities. I hereby certify that I am a party to this action and that the facts set forth in the foregoIng document are true and correct to the best of my knowledge. information and belief. i4~N~ Sydney D. Caplan Dated: Aft71/. / Y .2001 ,><>; '-. . .'. -~ ~ '. Exhibit A .~, ...;' , ~" '-'. "'-""'''''',' , ,- ~o_" ~ ~ ~ ,. ~.r" "~ ~,,<" ~-_. ~l.l!!!li!i~--~\\l EXHIBIT A Date Check # Amount 07/17/96 12856 550.00 03/29/96 12734 10,000.00 06/01/96 12805 200.00 07/30/96 12866 11,500.00 08/28/96 12895 16,000.00 09/05/96 12901 5,000.00 09/19/96 12918 6,000.00 09/30/96 12929 12,000.00 10/03/96 12934 25,000.00 11/05/96 12962 5,000.00 12/04/96 12994 8,000.00 12/31/96 13015 15,000.00 03/31/97 13105 15,000.00 04/04/97 13113 5,000.00 04/18/97 13138 10,000.00 OS/29/97 13178 5,000.00 06/11/97 13185 7,000.00 06/24/97 13199 13,000.00 06/30/97 13201 15,000.00 07/11/97 13215 10,000.00 07/24/97 13223 10,000.00 08/19/97 13238 10,000.00 09/30/97 13286 5,000.00 09/30/97 13288 10,000.00 03/12/98 13436 15,000.00 06/30/98 13540 29,000.00 10/29/98 13666 16,000.00 01/28/99 13758 8,000.00 06/02/99 13895 10,000.00 TOTAL 307,250.00 {A289358: } ),~ <'< ~. -' Exhibit B e': >. ,,' H~ ., - u 4-f.,i i ~ '" - , -, EXHIBIT "B" Mellon Bank . Date of Payment Interest to Mellon Bank Payment 10/10/95 $303.81 11/10/95 376.73 1/10/96 369.45 2/9/96 365.97 3/8/96 329.17 4/10/96 382.71 5/10/96 412.50 6/10/96 426.25 7/10/96 412.50 8/9/96 426.25 9/10/96 426.25 10/10/96 412.50 11/8/96 426.25 12/10/96 412.50 1/10/97 424.47 2/10/97 417.40 3/10/97 370.72 4/10/97 409.51 5/9/97 395.71 6/10/97 401.87 7/10/97 382.63 8/8/97 388.79 9/10/97 381. 91 10/10/97 363.81 11/10/97 369.68 12/10/97 351. 79 - 1 - ~-- .',,~ . ~- 0,'4:" ~""""'" .l.'-.' .......' Date of Payment Interest to Mellon Bank Payment 1/9/98 357.45 2/10/98 351.32 3/10/98 312.19 4/10/98 339.88 5/8/98 323.44 6/10/98 328.27 7/10/98 312.74 8/10/98 317.78 9/10/98 312.48 10/9/98 297.36 11/10/98 283.33 12/10/98 264.42 1/8/99 266.39 2/10/99 261.66 3/10/99 232.66 4/9/99 253.29 5/10/99 240.89 6/10/99 244.91 7/9/99 379.66 8/10/99 249.15 9/10/99 310.80 10/12/99 300.17 11/10/99 305.34 12/10/99 296.98 1/10/00 303.86 2/10/00 298.79 3/10/00 284.92 4/10/00 302.63 5/10/00 291.11 6/12/00 308.52 -2- ,.. ., '~tlillfr----'~"'~" "--I _ 1_ '''" ~:- LM;~:l<'",! Date of Payment Interest to Mellon Bank Payment 7/10/00 297.45 8/10/00 3 01. 91 9/11/00 296.87 10/10/00 282.68 11/10/00 287.07 12/11/00 273.18 1/10/01 277.73 $21,090.41 -3- -, Exhibit c ---..1- "'--'-~. - ri - " "~liG;d"""--"11 ' ~~"' p '" . ,-,;.-c...:. .... -1&,,:'- ~ " GUARANTY THIS GUARANTY (the anty") is executed and delivered on this .'J.lj-*' day , 1995, by sYIlNEY ,po CAPLAN aprl BEATRH-;~ ,~l\P~, is wife Ladultnindividuals with an aM1!~' a:t.. ~.{,f--1!J'Qj< oil N"i'UuI V.. ""0 (collectively "Guarantor"), in favor of COMMERCE BANK/ RISBURG, N.A., a national banking association, with offices at 100 Senate Avenue, P.O. Box 8599, Camp Hill, Pennsylvania 17001-9966 ("Lender"), to secure certain obligations of JAMES J. TOULOUMES, JR., FROSO I. TOULOUMES, CONSTANTINE G. J. TOULOUMES, and JAMES J. TOULOUMES, '111 (collectively "Borrower") . BACKGROUND A. Lender has agreed to make a $1,400,000 loan (the "Loan") to Borrower, the proceeds of which shall be used by Borrower to fund in part the cost of acquisition of the real estate and improvements, tangible and tD-t;~gitll.e personal property issued in connection with the operation of a certain restaurant business situate at iSl ~prtq2J~t Str~et, Camp Hill, Pennsylv,mia (the "Mortgaged Premises,i)"and to 'be known as "T-~os.ta'~. R~s.taurant," The Loan shall be secured by, among other tbirigs, a fIrst lien mortgage and security agreement on the Mortgaged Premises and a first lien perfected security interest in the tangible and intangible personal property situate on the Mortgaged Premises and used in connection with the restaurant including PA Liquor Li~p-nse No. R~186~5. B. In connection with the Loan, Borrower has executed and delivered to Lender a Promissory Note (the "Note") in the face amount of One Million Four Hundred Thousand ($1,400,000) Dollars, a Mortgage and Security Agreement from Borrower, as mortgago): (the "Mortgage"), encumbering the Mortgaged Premises, and certain.other collateral documents, all dated of even date herewith. The Note, Mortgage and other collateral documents are sometimes referred to herein, collectively, as the "Loan Documents" or, individually, as a "Loan Document". Tbe ~f.~ru;;j.pal balance of the Nnte( ..to.9.Elt.her wit.hal~ interest thereon and all other sums payaole thereunder or under' -the-'Mortgage or secured by the l,oan .Documents. is hereinafter collectively referred to as the.~l:Aq_gregate Debri'. C. In order to induce Lender to make the Loan, the Guarantor has agreed to execute and deliver this Guaranty to Lender. AGREEMENTS ~;- -,. - ~"- 1'~,**jij-_-i NOW, THEREFORE, in consideration of the premises recited above, and intending to be legally bound hereby, Guarantor and, if there is more than one, each Guarantor, jointly and severally, hereby agrees as follows: l. obligations Guarantor: Obliaatjons. The following guarantees and (together, the "Obligations") are undertaken by 1.1. Guarantor hereby unconditionally and jointly and severally guarantees and becomes surety to Lender for (a) the full and prompt payment of the A9are~ate Dp.bt and (b) the full and timely performance of all of Borrower's obligations under the Note and any other Loan Document. The obligations of'Guarantor constitute' a guarllr,t/lle. Qf..,Pa,WIlJant and not merely of collection, are absolute and unconditional under all circumstances and shall not in any event be discharged, impaired, or otherwise affected except by payment to Lender. Guarantor agrees that it will, within fifteen (15) days of written notice from Lender that any Event of Default (as defined in the Loan Documents) has occurred under the Note or under any Loan Document, pay directly to Lender the then existing amount of the Aggregate Debt. Guarantor further agrees that any payment required hereunder will be made to Lender regardless of whether such sums have become due by reason of the maturity of the Note or acceleration of the Aggregate Debt. The proceeds of any amounts paid pursuant to this Guaranty will be applied first to the payment of accrued interest, if any, on the Note, then to any other sums payable in connection with the Note or secured by the Loan Documents, and the balance of the proceeds will be applied to reduce the then outstanding principal amount of the Note, whether then matured or not, in the inverse order of its maturity. Proyjded""J1Q~r, that the total liability of Guarantor undp.r this Guaranty shall not exceed" the SUllI o'f''l''hYee""lfuJ'ii:l't'ed "Thousand '($30'0,0011)' o'611:ars. 1.2. If Borrower defaults with respect to any ,matter herein guaranteed, then, within ten (10) days after written notice from Lender, subject to the limitation set forth in paragraph 1.1, Guarantor will immediately assume all responsibility for the completion of all obligations of Borrower under the terms of the Note or any other Loan Document, or take such other action as Lender may request to remedy such default, or both. 1.3. Lender shall have the right to require Guarantor to pay, comply with and satisfy its obligations and liabilities under this Guaranty and shall have the right to proceed immediately against Guarantor with respect thereto, 2 --I ~ - ." , ~'o~;""- '-~::<''ll~,,,,".Ji.Bi,, without being required to bring any proceeding or take any action of any kind against Borrower or any other Guarantor or any other person, entity or property prior thereto, the liability of Guarantor hereunder being' joint and several and, in any event, independent of and separate from the liability of Borrower, any other guarantors and persons and the availability of other collateral security for the Note and the Loan Documents. 2. Cancellation. This Guaranty and all obligations and liabilities of Guarantor hereunder will be canceled when the Aggre'late Del?t has been paid in fuli1" 'i1:l!"avTaedi "'however"; that this "GUaranty snair" 'rema'in 'f:il"''ftifl' tcirtil:hmtf";e'J:'fect for so long as such payment may be voided in bankruptcy proceedings as a preference or for any other reason. 3. Costs and Fees. Guarantor hereby agrees that if it does not satisfy its obligations under this Guaranty in ' accordance with the terms hereof, the same shall be considered an event of default hereunder as to such defaulting Guarantor and Lender shall have the right, in addition to the other rights described in this Guaranty and subject to the limitation set forth in paragraph 1.1, to collect from such defaulting Guarantor all costs, fees and expenses (including reasonable attorneys' fees) incurred by Lender in connection with the enforcement of this Guaranty against such Guarantor, as well as interest on the unpaid liability hereunder at the Default Rate set forth in the Note, from and after the date of such Guarantor's default through the date of payment. 4. Bankruotcv of Borrower or other' Guarantors. The obligations of Guarantor under this Guaranty shall not be discharged, impaired or otherwise 'affected by the insolvency, bankruptcy, liquidation, readjustment, composition, dissolution or other similar proceeding involving or affecting Borrower or any other Guarantor, proceedings affecting the ownership of any of the above through merger, consolidation or otherwise, inconsistent orders in or claims by parties to any such proceedings or any other release of obligations by operation of law. 5. Aareements and Waivers. Guarantor jointly and severally hereby: ' 5.1. Agrees that its,obliqations hereunder shall not be released or otherwise affected by (and hereby waives notice of) any agreement, amendment, release, suspension, compromise, forbearance, indulgence, waiver, extension, renewal, supplement or modification of any of the Loan Documents, or any 3 .' '~, t ~t~:iid' other obligations of Borrower to Lender. 5.2. Consents that Lender may, without affecting the liability of Guarantor under this Guaranty, (I) exchange, release or surrender any property pledged by, or on behalf of Borrower or any other surety or guarantor of any liabilities of Borrower to Lender, (iil renew or change, with the consent of Borrower, the terms of any' of Borrower's liabilities to Lender, or (iii) waive any of Lender's rights or remedies against Borrower or any other surety or guarantor of any obligations of Borrower. 5.3 Agrees that its liability under this Guaranty shall not be reduced or affected either by any payment made by or on behalf of any other Guarantor under this Guaranty or by failure of any such party to make payment. 5.4. Agrees that its liability under this Guaranty shall be in addition to that stated in any other guaranty of parties other than the undersigned or any other guaranty that has been or may be hereafter given by any of the undersigned and shall not be reduced or affected by any payment made under any such guaranty. 5.5. Agrees that any failure or delay by Lender to exercise any right under this Guaranty or under any other guaranty or with respect to any of the Loab Documents or otherwise with respect to the Aggregate Debt shall not be construed as a waiver of the right to exercise the same or any other right hereunder at any time and from time to time 'thereafter. 5.6. Consents that its obligations under this Guaranty shall not be affected by any of Borrower's liabilities to Lender in excess of the amounts guaranteed hereunder, to the extent such liabilities result from any extension or modification of the Note, the Mortgage or any other Loan Document; but that any payment received by Lender from Borrower may first be credited against any such excess liability. 5.7. Agrees that Lender shall have, as security for the undertakings under this Guaranty, a lien upon, a security interest in and right of set-off against all property of the undersigned now or at any time in Lender's possession in any capacity whatsoever, exercisable only upon the occurrence of default under the Note; this Guaranty or any other Loan Document. 5.8. ,Agrees that Lender shall not, under any 4 - ~, ~ . ^' ,-- , , ~, - -~, "-~ - , ~ -. "-~..;1,- circumstances, be required to exhaust remedies or proceed against Borrower, other guarantors, sureties, parties, or any other security for the Aggregate Debt before proceeding under this Guaranty against any of the undersigned. 5.9. Agrees that under no circumstances shall it become subrogated to the claims or liens of Lender against Borrower or any other Guarantor and that all amounts due to Lender shall have priority over any amounts, whether or not related to the Loan Documents or the Mortgaged Premises, payable now or hereafter from Borrower to Guarantor. 5.10. Agrees that the obligations undertaken in this Guaranty shall not be affected by any provision in the Loan Documents limiting Lender's rights against Borrower to the Mortgaged Premises, or limiting Lender's rights to a deficiency judgment against Borrower. 5.n. Agrees that to the extent it controls Borrower, it will neither take or cause to be taken any action, or permit any inaction, which will violate or cause a default under any of the Loan Documents. 5.12. Agrees that notice or demand hereunder by Lender shall be by hand delivery or registered or certified mail, postage prepaid, addressed to a patty at its address set forth on the first page hereof, and shall be deemed given when hand delivered, or if mailed, upon deposit of such notice in the United states mail. Any Guarantor may, from time to time, by notice to Lender as provided for in the Loan Documents, designate a different address to which ,notice to him hereunder shall be sent. 5.13. Waives the right to marshaling of Borrower's assets or any stay of execution and the benefit of all exemption laws, to the extent permitted by law, and other protection granted by law to guarantors or sureties, now or hereafter in effect ~ith respect to any action or proceeding brought by Lender against it. 5.14. Agrees that no single exercise of the power to bring any action Or institute any proceeding shall be deemed to exhaust such power, but such power shall continue undiminished and may be exercised from time to time as often as Lender may elect until all of Guarantor's liabilities and obligations hereunder have been satisfied. 5.15. Agrees that its liability under this Guaranty 5 , 'n'--'!iI.I-< shall in rio way be released or otherwise affected by the commencement, existence or completion of any proceeding against' Borrower, one or more of the other Guarantors or any other person or entity or otherwise with respect to the collection of the Aggregate Debt; and Lender shall be under no obligation to take any action and shall not be liable for any action taken or any failure to take action or any delay in taking action against any of the Guarantors, Borrower or any other person or entity or otherwise with respect to the Aggregate Debt. 5.16. Waives any notice of (I) Lender's intention to act in reliance on this Guaranty, (ii) any presentment, demand, protest or notice of dishonor, nonpayment or other default with respect to the Aggregate Debt, and (iii) the commencement or prosecution of any enforcement proceeding against Borrower or any of the other Guarantors or any other person or entity with respect to the Aggregate Debt or otherwise. 5.17. Represents and acknowledges that the indebtedness evidenced by the Note and secured by the Loan Documents is and will be of direct benefit, interest and advantage to it. 5.18. Irrevocably waives all claims of waiver, release, surrender, alteration or compromise and all defenses, set-offs, counterclaims, recoupments, reductions, limitations or impairments. 6. security. The Guaranty i~ ~~cureq b~ the~l~Qg~~nd deliveq o!,,~25~~9~1:!~j;ftf;o,f_tha_c:.o~o~, ,:i,t9c~' 9f;~irst Harril!burg Bancor, In~. (the '~aresn) and by any'stiDsc~tucloris there~or~r add'l"t"!Ul\s'or accessions thereto, which may be hereafter made, and any cash and non-cash proceeds thereof, and by any and all monies, securities or property of the undersigned that may have been or may be hereafter pledged to or come into possession of Bank, its transferees or assigns or in which Bank may otherwise have been granted a security interest or acquired a lien by Guarantor (all of the foregoing hereinafter collectively called "Collateral") and Guarantor hereby grants a continuing lien and security interest in Collateral to secure payment of the Obligations of Guarantor hereunder which shall be governed by a Pledge Agreement of even date herewith executed by Guarantor, sydney D. caplan, and delivered to the Bank. 7. Financial Statements. Guarantor represents and warrants to Lender that the financial statements heretofore delivered by such Guarantor to Lender are true and correct in all respects, have been prepared in accordance with generally 6 ~~~. ~ . -- " ~, : lk--W accepted accounting principles, fairly represent the financial condition of such Guarantor as of the date thereof, and that no material change has thereafter occurred in the financial conditions reflected therein. Guarantor agrees to deliver to Lender such future financial statements and other information as are required to be delivered to Lender under any of the Loan Documents and as Lender from time to time may reasonably request. 8. Confession, of Judament. IN THE EVENT OF DEFAUL~ BY ANY GUARANTOR HEREUNDER, SUCH GUARANTOR HEREBY IRREVOCABLY AUTHORIZES ANY ATTORNEY OF ANY COURT OF RECORD TO APPEAR FOR AND CONFESS JUDGMENT AGAINST GUARANTOR AFTER DEFAULT HEREUNDER FOR THE AMOUNT FOR WHICH IT MAY BE LIABLE TO LENDER (OR ANY ASSIGNEE OR HOLDER OF THE NOTE OR MORTGAGE) UNDER THIS GUARANTY, AS EVIDENCED BY AN AFFIDAVIT SIGNED BY AN AUTHORIZED OFFICER OR AGENT FOR LENDER, ITS SUCCESSOR OR ASSIGNEE, SETTING FORTH THE AMOUNT THEN DUE, PLUS REASONABLE ATTORNEYS' FEES, WITH COSTS OF SUIT, AND RELEASE OF ERRORS. IF A COpy HEREOF, VERIFIED BY AN AFFIDAVIT SHALL HAVE BEEN FILED IN ANY SUCH PROCEEDING, IT SHALL NOT BE NECESSARY TO FILE THE ORIGINAL AS A WARRANT OF ATTORNEY. NO SINGLE EXERCISE OF THE FOREGOING WARRANT AND POWER TO CONfESS , , JUDGMENT SHALL BE DEEMED TO EXHAUST THE POWER, WHETHER OR NOT ANY SUCH EXERCISE SHALL BE HELD BY ANY COURT TO BE INVALID, VOID~LE OR VOID, BUT THE POWER SHALL CONTINUE UNDIMINISHED AND MAY BE EXERCISED FROM TIME TO TIME AS OFTEN AS LENDER, ITS SUCCESSORS OR ANY ASSIGNS SHALL ELECT, UNTIL ALL SUMS PAYABLE HEREUNDER HAVE BEEN PAID IN FULL AND ALL OBLIGATIONS OF ALL SURETIES HAVE BEEN COMPLIED WITH AND PERFORMED. 9. Subroaation. Before payment and performance in full of the obligations of Borrower and Guarantor under the Note, Mortgage and any other Loan Document, Guarantor s~al~ n9~have any,ri$lbt ,and shaJl not ~~~er,t a,ny right t6,b.e SIi.b:togatEid to, any right of tli'endlder of the' Note. 'No' subrogatIon' of Guarantor shall require the holder of the Note to proceed against any person or entity or to resort to any security or to take any other action of any kind as a result of subrogation. 10. Counteroarts. If there is more than one Guarantor, this Guaranty may be executed in one or more counterparts, each of which shall be deemed an original. Said counterparts shall constitute one and the same instrument and shall be binding upon each of the undersigned as fully and completely as if all had signed one instrument so that the joint and several liability of each of the undersigned hereunder shall be unaffected by the failure of any other Guarantor to execute any of said counterparts. 11. Jurisdiction: Service of Process. Guarantor hereby consents to the jurisdiction of the courts of Pennsylvania and/or the United StCltes District Court for the Middle District of 7 0-" . . .', J "'=-,M -, -'-~ii-', Pennsylvania in any and all actions or proceedings ar1s1ng hereunder or pursuant hereto, and irrevocably agrees to service of process by certified mail, return receipt requested, to its address set forth herein or such other address as each Guarantor may direct by notice to Lender. 12. Miscellaneous. The invalidity or unenforceability of anyone or more provisions of this Guaranty shall not affect any other provision, and in the event that any agreement or obligation contained in this Guaranty is held to be in violation of law, such agreement or obligation shall be deemed to be the agreement or obligation of Guarantor to the fullest extent permitted by law. This Guaranty will be governed by Pennsylvania law and may be amended only by a written instrument executed by Guarantor and Lender. The Qb Ii gat i Q~jJfeacb. ,.!iJ,lU'.;w,t.or..,j.f there is mO~e,than one Guarantor, under this Guaranty will be join1:' and., {!~Y.e.til,1. ''l'he-ptoVrsf6ns -Of' "this Guaranty will bind and inure to the benefit of the heirs, executors, administrators, legal representatives, successors and assigns of each Guarantor and Lender. Capitalized terms not defined herein shall have the meanings given to them in the Mortgage. Whenever the context requires, all terms used in the singular will be construed in the plural and vice versa, and each gender will include each other gender. this IN WITNESS WHEREOF, Guarantor has executed and delivered Guaranty as of the date first written above. klay~~ Sydney D. Caplan ~ d A~~ l"" .A/tt-.-(SEALI r II' Beatrice Caplan (SEAL) ~, JUll - ~ ,""' L_ _,. '_~_. :.--~.-" COMMONWEALTH OF PENNSYLVANIA COUNTY OF ya l.( fA,' 11 On this, the.::?if' day of 4.,~ uS 1- , 1995, before me, the undersigned, personally appeared S dney D. Caplan and Beatrice Caplan, his wife, known to me (or satisfactorily proven) to be the persons whose names are subscribed to the within document and who acknowledged that they executed the foregoing Guaranty for the purposes therein contained. S5 IN WITNESS WHEREOF, I hereunto set my hand and official seal. ~~.,'~ ~ Not y Public ~ My Commission Expires: ~sesI~~ ~~~~ :"~ ",~...T,;]Ct, ~I:lII11 ~ . ,,,,,....,,,,... .~. .... ,- ,-~ I -_Cci . ~_r,L Exhibit D - " '- ,~" -'....;;" PLEDGE AGREEMENT SYDNEY D. CAPLAN and BEATRICE CAPLAN, husband and wife, (herein referred to as the "Pledgor") and COMMERCE BANK/HARRISBURG, N.A., a national banking institution having offices located at 100 Senate Avenue, P. O. Box 8599, camp Hill, Pennsylvania 17001-8599 (herein referred to as the "Lender"), intending to be legally bound, agree as follows: Preliminarv Statemt;!nt. The Lender has agreed to extend credit to James J. Touloumes, Jr. and Froso I. Touloumes, his wife, and Constantine G. .1. Touloumes, and James J. Touloumes, III, (collectively "Borrower") as evidenced by a Promissory Note ,in the Principal amount of ~1,400,000 of even date herewith. As a condition to the extension of credit to Borrower the Lender has required and the Pledgor has executed a Guaranty of even date herewith in favor of Lender guaranteeing and becomi~g the surety to Lender for the full and prompt payrnentof the Note and the perfor~ance of the Borrower's obligations under the Note and has agreed to execute this Pledge Agreement pledging and granting to Lender as security for the Guaranty a first lien security interest 'in 25, 8.2~ s,hare.:; "of ,tne. ..G.OlJl!IlPP ,li,tQ.GJ.c; ot. F:i,r:;;.t"Ha!;risburg Bancor, Inc. (the "Shares"). Terms not otherwise defined herein shall have the meanings ascribed to them in the Guaranty. NOW, THEREFORE, in consideration of the premises, the Pledgor hereby agrees as follows: SECTION I. Pledae. The Pledgor hereby pledges to the Lender, and grants 'to the Lender a security interest in the following, whether now owned or hereafter acquired (the "Pledged collateral"): (A) the Shares and the certificates representing the Shares, as listed and described on Schedule I hereto; (B) all dividends, interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for the Shares; Ie) earnings attributable to the foregoing and all documents, certificates, instruments and general intangibles representing such earnings or in which such earnings may from time to time be invested. ' SECTION II. Securitv for Obliaations. This Agreement secures the payment of all obligations of the Pledgor now or .- ;." "C~ c~ ,_ _ '~ --,,..d hereafter existing under the Guaranty, whether for indebtedness, interest, fees, premium, expenses or otherwise, and all obligations of the Pledgor now or hereafter existing under this Agreement (all such obligations of the Borrower and the Pledgor being the "Obligations"). SECTION III. Deliverv of Pledaed Collateral. All certificates or instruments representing or evidencing the Pledged Collateral shall be delivered to an held by or on behalf of the Lender pursuant hereto and shall be in suitable form for transfe,r by delivery, or shall be accompanied by duly executed instr~ents of transfer or assignment in blank, all in form and substance satisfactory to the Lender. the Lender shall,have the right, at any time in its ,discretion and without notice to the Pledgor, to transfer to or to register in the name of the Lender or any of its nominees any or all of the Pledged Collateral, subject only to the revocable rights specified in Section VI (A). In addition, the Lender shall have the right at any time to exchange certificates or instruments representing or evidencing Pledged Collateral for certificates or instruments of smaller or larger denominations. If at any time the fair market value of the shares representing the certificates described on Schedule I'hereto, determined by reference to the closing sales price of the stock as reported by the NASDAQ NMS is less than $300,000, the Pledgor shall pledge, transfer, and assign .to the Bank aactl:'t"1onal marketable securities satisfactory to the Bank in its sole discretion adequate to assure that at all times the fair market value of the collate:!;jl suPjec;t ,to ~ El.ecllle AgrE!~ment shall equal or exceed $400,000. SECTION IV. Renresentations and Warranties. The Pledgor represents and warrants as follows: (A) The Pledged Collateral, in each case to the extent they represent shares of capital stock, have been duly authorized and validly issued and are fully paid and non-assessable. (B) The Pledgor is, or, in the case of after-acquired property, will be, the legal and beneficial owner of the Pledged Collateral, in each case free and clear of any lien, security interest, option or other charge or encumbrance except for the security interests created by this Agreement. (C) The pledge made pursuant to this Agreement creates and perfected first priority security interest in such Collateral, securing the payment of the Obligations. a valid Pledged 2 ,.1-'1 0-' " ~-o . ~ ,- w "...., '1" (D) No authorization, approval, or other action by, and no notice to or filing with, any governmental authority or regulatory body is required either (i) for the pledge made pursuant to this Agreement or for the execution, delivery or performance of this Agreement by the Pledgor or (ii) for the exercise by the Lender of the voting or other rights provided for in this Agreement or the, remedies in respect of the Pledged Collateral pursuant to this Agreement (except as may be required in connection with such disposition by laws affecting the offering and sale of securities generally).' , SECTION V. (A) Perfection and Priority of Secu\,ity Interest. The Pledgor agrees that the security interest of the Lender in the Pledged Collateral shall at all times be valid, perfected and enforceable against the Pledgor and all third parties, in accordance with the terms of this Agreement, as security for the Obligations, and such Pledged Collateral shall not be SUbject to any security interests, liens, attachments or other encumbrances that are prior to; on a parity with, or junior to, the Lender's security interest. (B) Further Assurances. The Pledgor agrees that at any time and from time to time, at the expense of the Pledgor, the Pledgor will execute and deliver all further instruments and documents, and take all further action, that may be necessary or desirable, or that the Lender may request, in order to perfect, protect, and preserve the priority of and the security interest granted hereby or to enable the Lender to exercise and enforce its rights and remedies hereunder with respect to any Pledged Collateral. . SECTION VI. Votina Riahts: Dividends: etc. (A) So long as no Event of Default or event which, with the giving of notice or the lapse of time or both, would constitute an Event of Default shall have occurred and is continuing: (1) The Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Pledged Collateral or any part thereof for any purpose not inconsistent with the terms of this Agreement; provided, however, that the Pledgor shall give the Lender at least five days' written notice of the manner in which it intends to exercise, or the reasons for refraining from exercising, any such right. (2) The Ple~QPI;....sAClU...b,e ,entit.!"edto receive and retain any and all dividends paid in respect of the PI....dgoed,'eel.keerat'::'.provided, however, that any and all 3 - , II -, ~,","- ~ (a) dividends paid or payable other than in cash in respect of, and instruments and other property received, receivable or otherwise distributed in respect of, or in exchange for, any Pledged Collateral, (b) dividends and other distributions paid or payable in cash in respect of any Pledged Collateral in connection with a partial or total liquidation or dissolution or in connection with a reduction of capital, capital surplus or paid-in-surplus, and (c) cash paid, payable or otherwise distributed in redemption of, or in exchange for, any Pledged Collateral, shall be, and shall be forthwith delivered to the Lender to hold as, or held for the account of the Lender as, Pledged Collateral and shall, if received by the Pledgor, be received in trust for the benefit of the Lender, be segregated from the other property or funds of the Pledgor, and be forthwith delivered to the Lender as Pledged Collateral in the same form as 50 received (with any necessary endorsement). (3) The Lender shall execute and deliver (or cause to be executed and delivered) to the Pledgor all such proxies and other instruments as the Pledgor may reasonably request for the purpose of enabling the Pledgor to exercise the voting and other rights which it is entitled to exercise pursuant to paragraph (I) above and to receive and retain pursuant to paragraph (2) above. (8) If and so long as an Event of Default or an event which, with the giving of notice or the lapse of time or both, would constitute an Event of Default shall have occurred and is continuing: (1) All rights of the Pledgor to exercise the voting and other consensual rights which it would otherwise be entitled to exercise pursuant to Section VI (A) (1), and to receive the dividend payments which it would otherwise be authorized to receive and retain pursuant to Section VI (A) (2), shall cease, and all such rights shall thereupon become vested in the Lender who shall thereupon have the sole right to exercise such voting and other consensual rights and to receive and hold as Pledged Collateral such dividend payments. 4 Ii_' ,. -. ,,-- ~ - Ili~j . . (2) All dividend payments which are received by the Pledgor contrary to the provisions of paragraph (1) of this Section VI (B) shall be received in trust for the benefit of the Lender, shall be segregated from other funds of the Pledgor and shall be forthwith paid over to the Lender as pledged Collateral in the same form as so received (with any necessary endorsement) . SECTION VII. Lender Aooointed Attornev-in-Fact. The Pledgor hereby appoints the Lender the Pledgor's attorney-in-fact, with full authority in the place and stead of the Pledgor and in the name of the Pledgor or otherwise, from time to time in the Lender's discretion to take any action and to execute any instrument which the Lender may deem necessary or advisable to accomplish the purposes of this Agreement, including, with limitation, to receive, endorse and collect all instruments made payable to the Pledgor representing any payment 'or'other distribution in respect of the Pledged Collateral or any part thereof and to give full discharge for the same. This power is given for security, is coupled with an interest, and is irrevocable for 50 long as this Pledge remains in effect. The power granted herein shall be unaffected by the disability of the Pledgor. SECTION VIII. Lender Mav Perform. If the Pledgor fails to perform any agreements contained herein, the Lender may itself perform, or cause performance of, such agreement, and the expenses of the Lender incurred in connection therewith shall be payable by the Pledgor under Section XI. SECTION IX. Reasonable Care. The Lender shall be deemed to have exercised reasonable care in the custody and preservation of the Pledged Collateral in its possession if the Pledged Collateral is accorded treatment substantially equal to that which the Lender accords its own property, it being understood that the Lender shall not have any responsibility for (a) ascertaining or taking action with respect to calls, conversations, exchanges, tenders or other matters relative to any Pledged Collateral, whether or not the Lender has or is deemed to have knowledge of such matters, or (b) taking' any necessary steps to preserve rights against any parties with respect to any Pledged Collateral. SECTION X. Events of Defalllt and Remedies 1I00n Default. An Event of Default shall exist hereunder if (a) a default exists under the Guaranty, or (h) Pledgor breaches any term or condition of this Agreement. If and so long as an Event of Default shall have occurred and is continuing: 5 - .-.="-" , ''''~'''''~j: (A) The Lender may exercise in respect of the Pledged Collateral, in addition to their rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party on default under the Uniform Commercial Code (the "Code") in effect in the Commonwealth of Pennsylvania at that time, and the Lender may also, without notice except as specified below, sell the Pledged Collateral or any part thereof in one or more parcels at public or private sale, at any exchange, broker's board or at any of the Lender's offices or elsewhere, for cash, credit or for future delivery, and upon such other terms as the Lender may deem commercially reasonable. The Pledgor agrees that, 'to the extent notice of sale shall be required by law, at least ten days' notice to the Pledgor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. The Lender shall not be obligated to make any sale of Pledged Collateral regardless of notice of sale having been given, the Lender may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so, adjourned. (B) Any cash held by or on behalf of the Lender as Pledged Collateral and all cash proceeds received by the Lender in re6pect of any sale of, collection from, or other realitation upon all or any part of the Pledged Collateral may, in the discretion of the Lender, beheld by or on behalf of the Lender as collateral for, and/or then or at any time thereafter applied (after payment of any amounts payable to the ,Lender pursuant to Section XII) in whole or in part by the Lender against, all or any part of the Obligations in such order as the Lender shall elect. Any surplus of such cash or cash proceeds held by the Lender and remaining after payment in full of all the Obligations ' shall be paid over to the Pledge or to whomever may be lawfully entitled to receive such surplus. SECTION XI. EXDenses. The Pledgor will upon demand pay to the Lender the amount of any and all reasonable expenses, including the reasonable fees and expenses of its counsel and of any experts and agents, which the Lender may incur in connection with (a) the administration of this Agreement, (b) the custody or preservation of, or the sale of, collection from, or other realization upon, any of the Pledged Collateral, (c) the exercise or enforcement of any of the rights of the Lender hereunder and (d) the failure by the Pledgor to perform or observe any of the provisions hereof. 6 "" ' - - , . ' !. ,. l~~." SECTION XII. Securitv Interest Absolute. All rights of the Lender and security interests hereunder, and all obligations of the Pledgor hereunder, shall be absolute and unconditional irrespective of: (A) any lack of validity or enforceability of the Note or any other agreement or instrument relating thereto; (BI any change in the time, manner or place of payment of, or in any other term of, all or any of the obligations under the Note or any other amendment or waiver of or any consent to any departure from the Note; (C) any exchange, release or non-perfection of any other collateral, or any release or amendment or waiver of or consent to departure from any guaranty, for all or any 'of the Obligations; or (DI any other circumstance which might otherwise constitute a defense to the performance of, or a discharge of, obligations under the Note. SECTION XIII. Continuina Securitv Interest. This Agreement shall create a continuing security interest in the Pledged Collateral and shall (al remain in full force and effect until payment in full of the obligations, (b) be binding upon the Pledgor, its successors, transferees and assigns, and (cl insure to the benefit of the Lender and its successors, transferees and assigns. Upon the payment in full of the Obligations, the Pledgor shall be entitled to the return, upon its request and at its expense, or otherwise applied pursuant to the terms hereof. SECTION XIV. Additional Riahts of Lender. In addition to and not in limitation of the other rights granted to Lender, the Lender m~y, at any time and from time to time take anyone or more of the following actions without liability to it: (A) in its name or in the name of the Pledgor demand, sue for, collect or receive any money or property at any time payable or receivable on account of or in exchange for any of the Pledged Collateral and, in connection therewith, endorse notes, checks, drafts, money orders, documents of title or other evidences of payment, shipment or storage in the name of Pledgor; (B) make any compromise or settlement deemed advisable with respect to any of the Pledged Collateral; 7 -~. ""' ,,' "-'-"''',-i (c. add or release an guarantor, endorser, surety or other party to any of the Pledged Collateral or the obligations. SECTION XV. Governina Law; Terms. This Agreement shall be governed by and construed in accordance with the internal laws of the Commonwealth of Pennsylvania. Unless otherwise defined herein, terms defined in Article 9 of the Uniform Commercial Code in the Commonwealth of Pennsylvania are used herein as therein defined. SECTION XVI. Miscellaneous. (A) If more than one Pledgor executes this Agreement, then this Agreement shall be the joint and several obligation of each such Pledgor and each Pledgor shall be deemed to have made the representations and warranties and given the power of attorney herein set forth. (5), the paragraph headings used herein are for convenience only and do not affect or modify the terms 'and conditions hereof. (C) If any provision hereof is found by a court of competent jurisdiction to be prohibited or unenforceable, it shall be ineffective only to the extent of such prohibition or unenforceability, and such prohibition or unenforceability shall not invalidate the balance of such provision to the extent it is not prohibited or unenforceable, nor invalidate the other provisions hereof, all of which shall be liberally construed in favor of Lender in order to effect the provisions hereof. (D) Piedgor agrees to indemnify and hold harmless Lender from any and all action of any nature whatsoever taken in respect of the Pledged Collateral, except for acts of gross 'negligence on the part of Lender. IE) The rights and remedies of Lender in this and all other documents are cumulative, and not exclusive of each other, and may be exercised singly or concurrently as often as Lender deems such exercise necessary. IN WITNESS WHEREOF, the Pledgor ~~~~~~~ted this Agreement under seal this ~ 8 ~ day of , 1995. 4~~Pb: .6 L~r~h-" /5eatrice Caplan ",'" ,-. ". '"~- . I'."j " I' . .. .~ . . SCHEDULE I 25,829 shares of common stock of First Harrisburg Bancor, Inc., Stock Certificate No. FHU 8065, CUSIP No. 320484 10 8 ~IU'I' ,_'J-~,'. ~,j' A'< ' .,~ ".., -~-',: Exhibit E ,-I, ::..:-~ PROMISSORY NOTE HI Ii;], III Dated August ';Ur' Camp Hill, PA , 1995 For value received and intending to be legally bound, JAMES J. TOULOUMES, JR. and FROSO I. TOULOUMES, his wife, CONSTANTTNF. G..J. TOULOUMES, and JAMES J. TOULOUMES, III, adult individuals, jointly and severally, of 328 West Old York Road, Mt. Holly Springs, Pennsylvania 17372, (hereinafter collectively called "Maker") promise to pay to the order of COMMERCE BANK/HARRISBURG, N.A., a national banking association (hereinafter called "Payee"), at P. O. Box 8599, 100 Senate Avenue, Camp Hill, PA 17001-9966 or such other place as Payee may designate in writing, the principal sum of One Million Four Hundred Thousand ($1,400,000) Dollars lawful money of the United States of America together with interest on the outstanding principal balance hereof as set forth below. 'fhe Payee has approved a mortga9~." loan totaling One Million Four Hundred Thousand ($1,400,000) Dollars (the "Loan" I to the Maker. The loan is evidenced by this Note which is executed and delivered pursuant to the terms of a commitment letter of the Payee to the Maker dated July 26, 1995 as amended August 3, 1995, the terms and conditions of which are incorporated herein by reference. This Note is secured, inter -__.~"._'._""'""~.h'''''''''",,_ - ~"~ ;- - ....~~;iwi'~; -~," ' " . '.'--,~ '"' ll:iful{_~'i,', :...~ alia, by a Mortgage and Security Agreement of even date herewith from the Maker as Mortgagor to the Payee as Mortgagee of certain property described therein situate in East Pennsboro Township, , Cumberland County, Pennsylvania, known and numbered as 451 N. 21st Street, Camp Hill, Pennsylvania. This Promissory Note shall be payable as follows: Interest only at the Applicable Rate of Interest as hereinafter defined on the outstanding principal balance of the Note shall be , '-I" ' made by Maker to Payee monthly on the ~8 day of September, 1995 and on the cd ~-l'L. day of each month thereafter until December .,,) r;-- 1995. On December J ~ .J-~ 1995 and on the d.L~ay of each month thereafter Maker shall pay consecutive monthly installments (each a "Scheduled Monthly Installment") which shall be in the i~itial amount of Sixteen Thousand Three Hundred Fifteen Dollars and Thirty-five Cents ($16,315.35) each (based on an initial interest rate of eleven and one-fourth (11-1/4%) percent per annum and a one hundred eighty (180) month amortization schedule). Each scheduled monthly payment shall be applied first to interest at the Applicable Rate of Interest hereinafter defined and then to the reduction of the principal balance of this Note. The amount of the Scheduled Monthly Installment shall be increased or decreased from time to time by the Bank in such amount as is necessary to continue to amortize 2 '~ ,Y'~~" " '. ~ ' lnd " Wiif~~~,i ::~~ the principal of this Note over a period of one hundred eighty (J80) mo~ths from November J~, 1995. On November ~~ 2010 -' , (the "Maturity Date") a final installment shall be due and payable which shall include all unpaid amounts of the principal balance and interest accrued and unpaid thereon and any and all other payments or amounts due under this Note the Agreement, or any other Loan Document as hereinbefore defined herein. Upon Payee giving at least ninety (90) days written notice by regular mail to Maker, Payee shall have the absolute right and option t~ accelerat~ ~he Maturity Date to the third, sixth, ninth, or twelfth anniversary of the date of this Note ~~~'--~"-, ~,-,.., (the "Accelerated Maturity Date"), regardless of whether an Event of Default as herein defined shall have occurred. As of the Accelerated Maturity Date at the Payee's absolute right and option, all unpaid amounts of the then principal balance hereunder, all accrued but unpaid interest thereon, and all other amounts payable under this Note shall be immediately due and payable. The Applicable Rate of Interest shall be that rate of interest which is at all times equal to two "(2%),,, percent per annum above the Commerce Bank/Harrisburg, N.A. Prime Rate in effect at that time and thereafter in effect from time to time at 3 ,"_J -- .Il- ^ ""'-'!,J ::-,~ Bank. The Applicable Rate of interest shall change on the day on which any change in said Prime Rate shall become effective. When the Prime Rate changes on a day other than the first day of a calendar month, interest for the month in which such change or changes are made shall be calculated on a per diem basis with the various Prime Rates in effect for that month. To the extent permitted by Pennsylvania law, interest shall be calculated by the method known as the "Banker's Rule" using the actual days the principal balance is outstanding hereunder divided by 360 days and multiplied by the then applicable variable interest rate described herein; provided, however, that to the extent such calculation is not permitted by Pennsylvania law, interest hereunder shall be calculated on the basis of a 365 or 366 day year, as the case may be. If the Payee has more than one Prime Rate in effect simultaneously, .Prime Rate" shall mean the highest of such prime rates then simultaneously in effect. The utilization of "Prime Rate" herein, is solely for the purpose of defining the rate of interest applicable hereunder. Its utilization shall in no way preclude or limit the Payee from lending to certain borrowers, from time to time, at a rate of interest less than the "Prime Rate" as defined hereunder. 4 o~, " ~ ' 0 - , " "." ,,,~ - J._ ~ :i4!"J ...,,:~' If any installment of principal and/or interest under this Note or any other sum due under any other Loan Document (as hereinafter defined) is not paid on its due date or if the Maker fails to pay the entire principal balance, together with interest accrued thereon, and all other sums due under this ,Note or any other Loan Document on the Maturity Date as defined herein, interest shall be due on such overdue amount (including overdue interest) from its due date to the date on which it is paid at the rate of two percent (2%) per annum above the Applicable Rate but not more than the highest rate permitted by law (the "Default Rate"). Such interest at the Default Rate shall (in addition to all other interest) be due on each payment date and on the date on which the overdue amount is paid. Interest at the Default Rate shall be due on all interest from the date on which it is due until the date on which it is paid and any interes~ which is, not paid at maturity (whether stated or accelerated) shall be added to the principal balance of this Note on the Maturity Date. Maktr may prepay 'the unpaid principal sum hereof in whole orin part without prepayment charge or premium. In the event any of the aforesaid payments of interest and/or principal remain unpaid fifteen (lS) days after such payment's are due, Maker shall pay a delinquency charge of five 5 je"'" " L -'.l"'. " _(lr~l>'b'" ;"..-. percent (5%) of the amount so overdue to cover the extra expense involved in handling delinquent payments. Provisions for such delinquency charge shall not be construed to permit Maker to make any payment after its due date, obligate Payee to accept any overdue ,installment, or affect Payee's rights and remedies upon default. Maker shall not be obligated to pay and Payee shall not collect interest at a rate in ,excess of the maximum permitted by law or the maximum that will not subject Payee to any civil or criminal penalties. If, because of the acceleration of maturity, the payment of interest in advance or any other reason, Maker is required, under the provisions of any Loan Document, to pay interest at a rate in excess of such maximum rate, the rate of interest under such provisions shall immediately and automatically be reduced to such maximum rate, and any payment made in excess of such maximum rate, together with interest thereon at the rate provided herein from the date of such payment, shall be immediately and automatically applied to the reduction of the unpaid principal balance of this Note as of the date on which such excess payment was made. If the amount to be so applied to reduction of the unpaid principal balance exceeds the unpaid principal balance, the amount of such excess shall be refunded by Payee to Maker. 6 I"'" --'loi<" "I" ~iLtliilJlJiil."fi~ : :.,:~' This Note is secured by and entitled to all of the benefits of (i) a Mortgage and Security Agreement (the "Mortgage") creating a first, J.,ien upon the real estate and improvements thereon situate in East Pennsboro Township, Cumberland county, Pennsylvania, known and numbered as 451 North 21st street, Camp Hill, Pennsylvania (the "Mortgaged Premises"); (ii) a first lien perfected security interest in the fixtures, equipment, furniture, and furnishings now or hereafter installed in, affixed to, placed upon, or used in connection with the Mortgaged Premises or used or useful in connection with the operation of the restaurant business which shall be conducted upon the Mortgaged Premises (the "Security Agreements"); (iii) a first lien security interest upon all insurance proceeds, condemnation awards, rents, issues, and profits in respect of the Mortgaged Premises, and all construction contracts, permits, approvals, and plans, specifications, and documents affecting the Mortgaged Premises evidenced by the security agreements contained in the Mortgage; (iv) an Assignment of Rents and Leases affecting the'Mortgaged Premises; (v) a ,first lien perfected security "..-.-.... interest in and an irrevocable power of atto~ney per~a~n~ng to PA .-::~, '..-'. '...,. ~ .".~ --... '..":-'_ ::;.;H:..':'-..... ~ Liquor License No. R-18645 and related permits used in connection .~.. . .,. with the restaurant business; (vi) an Assignment of the life insurance policies on the life of Froso I. Touloumes and ......,..~ ;'t..... ,.. . Constantine G. J. Touloume~~ each ~f which shall have an 7 l1 , , ........- ,-"~:...J"''"''"''''"''_' ".v\~'1.~~j: .~-.:.> aggregate unencumbered death benefit of not less than $250,000 as to each such Borrower; (vii) th~GUaranty]and Suretyship Agreements (the "Guaranties") of JFK-T Group, Inc.; Sydney D. :~:.-. Caplan and Beatrice Caplan, his wife; and Percy Glynn (the "Guarantors"); (The Guaranties shall be secured by the security interests, pledges, hypothecations, and assignments more fully described in the Commitment Letter.) and (viiJ/J mortgagelt from James J. Touloumes, Jr. and Froso I. Touloumes, his'" wife, as mortgagors to the Payee as mortgagee creating subordinated liens upon the real estate and improvements thereon situate in Cumberland County, Pennsylvania, and known and numbered as ,a) 328 W,=-~t ~ld York Road, Mt. Holly Springs, Pennsylvania, (b) 5 West Pine Street, Mt. Holly Springs, Pennsylvania, (e) 11 West Pine street, Mt. Holly Springs, Pennsylvania, ld) 3 West Pine Street, Mt. Holly Springs, Pennsylvania, and (e)" 13, Hollinger Street, Mt. Holly Springs, Pennsylvania. (The Note, the Mortgages, the Assignment of Rents and Leases, the Security Agreements, the Guaranties, the Pledges, and any other document relating to this loan are hereinafter collectively referred to as "Loan Documents.") Reference is made to the Loan Documents for a description of the collateral secured and pledged as security for this Note, the nature and extent thereof, the rights of the holder of this Note and the ~aker in respect of such security and otherwise, and the terms upon which this Note 8 ~.~ ~-~ ""- <., ......... . is issued. All of the terms, covenants, agreements, conditions, warranties and provisions contained in the Loan Documents are hereby incorporated into this Note with the same force and effect as if they were fully set forth herein. Maker covenants and agrees to comply with and perform all such provisions, or cause them to be complied with and performed, strictly in accordance with their terms. For purposes of this Note "Collateral Security" means any and all goods, chattels, inventory, equipment, securities, deposits, accounts receivable, notes, documents, instruments, money, safe deposit box contents, distributorship and franchise agreements, and other property of Maker of whatever kind or nature which may now or hereafter be deposited with or in the possession or control of Payee. Maker hereby pledges the Collateral Security as security for the payment of this Note and agrees that, in the event of a default under this Note (whether or not the default is an event of default as defined below), Payee may set off any of tpe Collateral Security against any amount due hereunder or ,apply any other Collateral security or other proceeds of the Collateral Security to any amount due under this Note or under any other Loan Document. 9 ~; . ~~" '-A,,' -~- '" J'lil'Ml!.!M'Ml~_'i ";"'lo:<.> "Default" under this Note shall mean any Event of Default (as hereinafter defined) and any event which with the passage of time or the giving of notice, or both, would become an Event of Default. Upon default (as hereinbefore defined) Payee may collect any late charges, interest on overdue amounts at the Default Rate and any damages or loss to Payee by reason of the default and may set off the Collateral Security against or apply it to any sum due under this Note or any other Loan Document. Each of the following events shall constitute an "Event of Default" under this Note, subject to any applicable notice and grace period as set forth herein or therein: (a) Maker and/or any Guarantor fails to make any payment of principal or interest or any other sum required to be made under this Note, the Mortgage, or any other Loan Document, and such payment is not made within fifteen (15) days after its due date; (b) there occurs an Event of Default as defined in the Mortgage, the Assignment of Rents and Leases, or any other Loan Document (as hereinbefore defined) executed by Maker and/or any Guarantor; (c) if any Maker and/or any Guarantor becomes insolvent or makes an assignment for the benefit of creditors; or (d) if (i) a Court shall enter a decree or order for relief in respect of any Maker 10 " ~ , ~ _ c, 0' '~~j,-, -,";'~ and/or any Guarantor in an involuntary case under the Federal Ban~ruptcy Code or any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of any Maker and/or any Guarantor or for any of the property of any Maker and/or any Guarantor, ordering the winding up or liquidation of his/her/its/their affairs, and such decree or order shall remain unstayed and in effect fDr a periDd of sixty (60) days; or (ii) any Maker and/or any Guarantor shall commence an action in bankruptcy, insolvency, or under any other similar law now or hereinafter in effect, or shall consent to the entry of an order for relief in an involuntary case under any such law, or shall consent to the appointment Df or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or similar official) of any Maker 'and/or Guarantor or for any part of his/her/its/their property; (e) failure by the Maker and/or any Guarantor to observe or perform any covenant, agreement, condition or term of this Note, the Mortgage, the Assignment of Rents and Leases, or any Loan Document executed by Maker and/or any Guarantor and delivered to Payee in connection with this Note which remains uncured fifteen (15) days after written notice thereof by Payee provided that if such failure cannot be reasonably cured within such fifteen (15) day period as aforesaid and if Maker and/or any Guarantor has II ,-, ~~~ . .. ~ " l _ ~,,---,. ~, .'~ ~~,;b '..-~ diligently attempted to cure the same and thereafter continues diligently to cure the same, then the cure period provided for herein may be extended up to a date set by Payee (or breach by Maker and/or any Guarantor of any other obligation to the Payee subject to any applicable notice and/or grace period); or (f) any representation or warranty in any financial or other statements, schedule, certificate or other document of any Maker and/or any Guarantor delivered to Payee by or on behalf of any Maker and/or any Guarantor shall prove to be false, misleading, or incomplete in any material respect; or (g) a material adverse change occurs in the financial condition of any Maker and/or any Guarantor; ,or (h) Maker assigns or otherwise transfers or attempts to assign or transfer any interest in the Mortgaged Premises (except as provided in the Mortgage); or (i) Maker defaults under the terms of a certain $400,000 Promissory Note of even date herewith executed ny Maker and delivered to Nicholas A. Rillo and Joseph A. Rillo, Jr., partners trading as Rillo's of Carlisle. At any time after occurrence of an Event of Default, Payee may, at Payee's option and without notice or demand, do any one or more of the following: (a) without declaring the unpaid principal balance to be due, collect all installments of principal and/or 12 "" ",;' _.~ : i Dllill!.cj .,.0;.> interest (at the then applicable rate provided above to the date on which a default occurs and, thereafter, at the Default Rate) and all other sums due under this Note or any other Loan Document from time to time, by any action provided in this Note or any other Loan Document or provided at law or in equity; (bl declare the entire unpaid principal balance of this Note, together with interest accrued thereon (at the then applicable rate provided above to the date on which a default occurs and, thereafter, at the Default Rate) and all other sums due from Maker under this Note or any other Loan Document to be due and payable immediately; and/or (c) exercise any other right or remedy as may be provided in this Note or any other Loan Document or provided at law or in equity. Payment of all or any part of the Indebtedness (as defined below) may be recovered at any time by anyone or more of the foregoing remedies. Whether or not the entire unpaid principal balance is declared to be due, the interest rate on the unpaid principal 13 uI'-" . ~~ -,. <" ..;:..j "''':~ . balance shall be the Default Rate from the date on which a default occurs until the date on which all defaults are cured or the entire unpaid principal balance and all other sums due under this Note or any other Loan Document (collectively, the "Indebtedness") are actually received by Payee. Upon the entry of any jUdqment after default, interest shall continue to accrue at the Default Rate on the judgment amount from the date of judgment until actual receipt of the entire Indebtedness by Payee, including any period after a Sheriff's Sale of the Mortgaged Property. In any action under this Note or any other Loan Document, Payee may recover all costs of suit and other expenses in connection with the action, including the cost of any title search and reasonable attorneys fees, paid or incurred by Payee. The rights and remedies provided to Payee in this Note and the other Loan Documents, including all warrants of attorney, (a) are not exclusive and are in addition to any other rights and remedies Payee may have at law or in equity, (b) shall be cumulative and concurrent, (c) may be pursued singly, successively or together against Maker, any of the Mortgaged Property, any of the Collaterai Security and/or any other security at the sole discretion of Payee, and (d) may be 14 .~~-~" ~ , "'0 _ -~~k,~ .,........ exercised as often as occasion therefor shall arise. The failure to exercise or delay in exercising any such right or remedy shall not be construed as a waiver or release thereof. Maker hereby waives and releases Payee and its attorneys from all errors, defects and imperfections (of a procedural nature} in any proceeding instituted or maintained by Payee under this Note or any other Loan Document. Maker hereby, to the extent not prohibited by law, waives all benefit of any and all present and future statutes of limitations and moratorium laws and any and all present and future laws which (a} exempt all or any part of the Mortgaged Property, the Collateral Security or any other real or personal property or any part of the proceeds of any sale of any such property from attachment, levy, foreclosure or sale under execution, (b) provide for any stay of execution, marshaling of assets, exemption from civil process, redemption, extension of time for payment, or valuation or appraisement of all or any part of the Mortgaged Property, the Collateral Security or any other real or personal property, or (c} conflict with any provision of this Note or any other Loan Document. Maker agrees that the Mortgaged Property, the Collateral Security and any other real or personal property may be sold to satisfy any judgment entered under this Note or any 15 ,;.;:- - .~~ . ,1 'L. I;. L_ -. __"~. .~ '." ,-, -,.:. Lli Ii;;, ....0<.... other Loan Document in whole or in part and in any order as may be desired by Payee. Maker and all endorsers, sureties and guarantors, jointly and severally:' (a) waive presentment for payment, demand, notice of demand, notice of nonpayment or dishonor, protest and notice of protest of this Note, and all other notices (not expressly provided for in this Notel in connection with the delivery, acceptance, performance, default, or enforcement of the payment of this Note; (b) agree that the liability of each of them shall be unconditional without regard to the liability of any other party and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or consented to by Payee at any time; (c) consent to any and all indulgences, extensions of time, renewals, waivers or modifications granted or consented to by Payee at any time; (d) consent to the release of all or any part of or interest in the Mortgaged Property 'or the Collateral Security or any other collateral described in any Loan Document, with or without substitution; and (e) agree that additional makers, endorsers, guarantors or sureties may become parties to this Note or any other Loan Document without notice to them or affecting their liability under this Note or any other Loan Document. 16 ~ -,,^"'" . ., , __..J~'. . , ..'. - . ~- l'i- ,', ~''':":"'-' Payee shall not be deemed, by any act of omission or commission, to have waived any of its rights or remedies hereunder unless such waiver is in writing and signed by Payee. Such a written waiver signed by Payee shall waive Payee's rights and remedies only to the extent specifically stated in such written waiver. A waiver as to one or more particular events or defaults shall not be construed as continuing or as a bar to or waiver of any right or remedy as to another or subsequent event or default. Maker shall pay the cost of any revenue, tax or other stamps now or hereafter required by law to be affixed to this Note. Maker shall pay any and all taxes imposed upon Payee by reason of this Note or the ownership or possession of this Note, including personal property taxes, but excluding any franchise or capital stock taxes, bank shares taxes, or income taxes imposed by reason of interest received by Payee under this Note, and shall reimburse Payee for the amount any such taxes paid by Payee. If Maker fails or refuses or is not legally permitted to make such payment or reimbursement, Payee, may, at its option, declare the Indebtedness to be immediately due and payable, whereupon Maker shall immediately pay such principal and other sums to Payee. 11 ""'l ,~ ~= ~~ '--', . .-',",-,,-,- ~.~ . "', .. '.nil__l-. "-=~~ . If Maker shall, without in each instance the prior written consent of Payee, sell, transfer, convey, mortgage, encumber, lease or otherwise alienate all of any part of the Mortgaged Property or any interest therein (except for leases permitted by the Mortgage or Assignment of Leases, or sale of lots in the ordinary course of Maker's business if payment of the appropriate release price as provided in the Mortgage is made to Payee), whether voluntarily or by operation of law, then Payee may, at its sole option, declare the Indebtedness to be immediately due and payable, whereupon all such principal and other sums shall be immediately due and payable. Payee shall not be construed for any purpose to be a partner, joint venturer or associate of Maker or of any lessee, operator, concessionaire or licensee of Maker or of any of the Mortgaged Property by reason of this Note or any of the Loan Documents or of any action'by Payee pursuant to any provision of this Note or any other Loan Document. Time is of the essence of each and every provision of this Note. The words "Payee" and "Maker" shall include the respective heirs, distributees, personal representatives, 18 ;-, '-"- - , " .-, .~". - ~~ '~,,- ....-0:... . successors and assigns of Payee and Maker, respectively. The provisions of this Note shall bind and inure to the benefit of Payee and Maker and their respective heirs, distributees, personal representatives, successors and assigns provided that the provisions of this paragraph are subject to all the other provisions of this Note and the other Loan Documents, including the above due-on-sale clause. If there is more than one Maker, the liability of each shall be joint and several. As to all pronouns and other terms in this Note, the singular shall include the plural and vice versa and any gender shall include the other two genders, as the context may require. The phrase "any of the Mortgaged property" shall mean "all or any part of any of the Mortgaged Property or any interest therein." The phrase "any of the Collateral Security" shall mean "all or any part of the Collateral Security or any interest therein." This Note may be modified, amended, discharged or waived only by an agreement in writing signed by the party 19 ~. . " . ~ -, ,:. ,;,." ,-~-" ~!i- '.-~ against whom enforcement of any such modification, amendment, discharge or waiver is sought. This Note shall be governed by and construed according to the laws of the Commonwealth of Pennsylvania: All notices, requests, demands and other communications given pursuant to any provision of this Note shall be given in writing by U.S. certified or registered mail with return receipt requested and postage prepaid, or by any 24-hour courier service with proof of delivery, addressed to the party for which it is intended at the address of that party first stated above or such other address of which that party shall have given notice in the manner provided herein. Any such mail notice shall be deemed to have been given when the notice is deposited in the mail. Any such courier notice shall be deemed to have been given on the fOllowing business day. UPON DEFAULT MAKER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR ATTORNEYS OR THE PROTHONOTARY OR CLERK OF ANY COURT OF RECORD IN THE COMMONWEALTH OF PENNSYLVANIA, OR IN ANY OTHER JURISDICTION WHICH PERMITS THE ENTRY OF JUDGMENT BY CONFESSION, TO APPEAR FOR ANY OR ALL MAKER IN SUCH COURT IN AN APPROPRIATE ACTION THERE BROUGHT OR TO BE BROUGHT AGAINST MAKER 20 . ~, " , .~ -, ~-- c.;.~_~"";: "i" ::":';-"" AT THE SUIT OF PAYEE ON THIS NOTE, WITH OR WITHOUT COMPLAINT OR DECLARATION FILED, AS OF ANY TERM OR TIME, AND THEREIN TO CONFESS OR ENTER JUDGMENT ,AGAINST MAKER FOR ALL SUMS DUE BY MAKER TO PAYEE UNDER THIS NOTE AND THE OTHER LOAN DOCUMENTS (WITH OR WITHOUT ACCELERATION OF MATURITY), INCLUDING ALL COSTS AND REASONABLE ATTORNEYS' FEES. FOR SO DOING THIS NOTE OR A COPY HEREOF VERIFIED BY AFFIDAVIT SHALL BE A SUFFICIENT WARRANT. THE AUTHORITY TO CONFESS JUDGMENT GRANTED HEREIN SHALL NOT BE EXHAUSTED BY ANY EXERCISE THEREOF BUT MAY BE EXERCISED FROM TIME TO TIME AND AT ANY TIME AS OF ANY TERM AND FOR ANY AMOUNT AUTHORIZED HEREIN. MAKER EXPRESSLY AUTHORIZES THE ENTRY OF REPEATED JUDGMENTS UNDER THIS PARAGRAPH NOTWITHSTANDING ANY PRIOR ENTRY OF JUDGMENT IN THE SAME OR ANY OTHER COURT FOR THE SAME OBLIGATION OR ANY PART THEREOF. MAKER ACKNOWLEDGES THAT THEY HAVE BEEN REPRESENTED BY COUNSEL IN CONNECTION WITH THE EXECUTION AND DELIVERY OF THIS NOTE AND THAT IT UNDERSTANDS THIS PROVISION FOR CONFESSION OF 21 .---' ,- '~ c _,. > .. -' . ~ , "'->l-_, _ ,-, ':., . ,,,,,,,,,,,",,,,,',,,,,,,., i,:;'. :'":,:""" JUDGMENT, AND MAKER WAIVES ANY RIGHT TO NOTICE OR A HEARING WHICH IT MIGHT OTHERWISE HAVE BEFORE ENTRY OF JUDGMENT. seal the lilt WU~ESS WHEREOF, Maker has executed this Note under ot~ day of August, 1995. .~ 0--- rr ().a~"..)... ~~[tff(?v-rJ~$A . ames J. uloumes, Jr. ~I.~O~ (~(,.:.\ \~ Constantine G. J. Touloumes tL-tJ ~ ~mes ~Touloumes, III Witness Witness mnl "' .~"~ - ~~ '" . ~.~w .;.,..,..-' BXPLANA~ON' OF RIGHTS - COKI'2SSIOJI' 0:1' .J'DDGMIm'l' 1. On the date he.reof, I, S%DNEX D. ClIPLll1f ancl BEAZUCI!l CAPLA1f, his wife, aduJ.t individnUs, have ..,..,c:ute4 a Guaranty ill favor of c~ez BANK/BllR:RISBl1RG, N.A. ("Commerce") g'Uar....eeeillg pall'D'lnt of the Agg'rugate Doobt an4 the perfOEm&l1ce of certain obligations as defillec:l thenin. '!'he ~ate Debt includes lelan proceeda issullCl or to be issueel by C_rce to or for the Denefit of JaJllies J. 1'ouloumes, Jr. and F.roso :t.. !oul.oumes, his wife, Constantine G. J. '1'ouloumes, ancl J_s J. '1'oulo_s, III (<:ollectively the uSorrower"). W. desi.re to induce COJDID8:rce 1:0 close the lOiID ~o BOr!:'Q..r.. W. undez:stancl' clearly ancl speci.fica1.1y that by signing the Guaranty, wh.lch COl'lt:.ains a. confessi.on of judgment clause: <a) We authorize Cozamerce eo enter a Judl;ment. aqainst:. us and in i t:.s favor which will gi.ve COJIIII8:r:ce a. lien upon any rau ."t.a.te, which ". may own .incl.ud.inq our home: (b) We give up the rig-ht to any notice or oppoJ:1;un.i.ty to be heaJ:cf. prior to the entry o~ tlUs J'ud-:v-nt OD the .rec:orcts o~ ~e court: (cl We agree that COIlllll8Z:C1O can ent.r the juc1gmant after default as d.d'1.ned. ill t.he Guaranty or in any of the Loan Doe1ZIIIants a.. th..t taJ:m is definllCl therein; (4) _ sul:>j.ct all our property, real, personal an4 mixed, to execution and sheriff"s sue, pursuanc. to 1:hi.s Ju~nt, prior to proof' of non-pa:yment or other default on our part; (e) We will be unabl. to cha1.1enge this "..."'_~t, shoulcl Commerce enter it except by proceeding- to open or to s~il<e the JucflJment; ancl such a proceeding will result in ;attorney'. f.es and costs which ". "ill haV8 'to pay; (f) We give up the tight to reqa;i%e c....."". to present a sworn cIoC1lDleDt setting forth ill non-conclusory te=IS the basis for i t:s claiJD hefore obta.iniDg' .. writ of ga.:n1.sm.nt or a. "ri~ o~ a't.~achmlint.; (g) We aqz:ee that the writ of g-arni~t or writ of attacm-nt may be issuecl without the necessity of a review and an approval by an offid.al _ste4 with requisite cli.sc:retion; and (h) W. g-ive up the rig-ht or opportun.i.ty for a prempt: post-seizure he&z:in<j at vh1.<:h C_ IIIllSt deaoonstrat. at least the prol>able valicli.ty of its cJ.aim. 2. We know and understand that it is this instrument ancl the confession of judqment cJ.ause in the Guaranty wh1.ch gi..... C.......r<:ol the rights ancl benefits eDUIIl8r&tecl in subparagraphs (a) tbz:0WJh (!I) 01; peragrap!l 1 CO"... IE' 1i2 DO ,NQ:r ,_S:IGN 'J!II:ts- ?V~, ,AND ~ .~~~ ~~~', ,C:~~DlS TBB CONftSS%CDl OF Jt1lJ~ C.LAUSE. Wz DNi:hirRS~Mm lY'Ja. D, w~m.n_,"___'V],(__,. n:\T<T.cwmc;; (a) the rig-ht: to ha_ notice ancl an opportunity to be !I.ard priot",to ""''''9'''-~t; (b) the right to ha_ the bw:cIen of pz:ovi.ng- default rest upon C_rce before my property can be u:posllCl to ___tion; (c) the right to avoid the aclcli.tion&J. expense of attorneys' fees and costs ind.dent to opening and s~il<ing off a judgment; (d) the right to require COlIIIIlOrce to preseat a Sworn d<>c:ument -.~""'-.._......-...._., -, ^'- ~~ -~ ~,"- - , "^--~ '"'1fIi , r" setting- for'th in non-conc:l.usory ta.z:m.s the balli.a of ita claj,m before COIIIIDIIrce ol>tains a writ of garnishment or a writ of attachment; (d) the right to condition the iasuanca of a. writ of garnisbmen.t or a writ of a:tt:achmel2.t on a review and an approval hy an ot't'icial vested. with the raqu.isit. d1.sc:.t:.iou; and (f) the opportunity for or right to a prOlllpt post-seizure hearing at which COIIIIIIerce IINst demonstrate at least the probable val.idity of its claim. 3. Fully and cOlllplet:ely understanding these righta which we have prior to signing the Guaranty and this inJItrument and clearly aware that these righta will be given up, waived, rellnqu1.shed and ab....doned if _ sign the Guaranty and 'this iDsb:'ument, we never'Cheless freely and. volun.t:.a.rily choose to sign the Guaran"t.y and this instrument., our inten1:i.oDs Qeinq t.o give up, waive, relinquish and abandon my mOWD rights (as d.es=ibed in paragraph a Gove), and subject ourselves to the circumstances clescribed. .in paragraph 1 ahove. 4. We acknowl.edqe that (a) the Guaranty and this i....trument have been executed. in a commercial tranaai:Qon f'or bus.i.neas purpose.; (b) that at all times material hereto we were represented. by counsel in connection with the exec::ut:.ion of the Loan DOCUlll8nt:.s, and. particul;BZly the Guaranty and. this instrument; (c) that we reviewed" the SUaranty and this instl:"Wlletlt vi'th our attorney l>efore signing them; and (d) that our annual income exceeds $10,000.00. "'''-;~-y Dated this cI U UG of t\1.t~Ul-t, 1995. WE HAVE lUlAJ) TIlIS ENTDlE FORM. liE FllLLY UNDERSTAND ITS COIlTEHTS AND INTEND TO BE LEGALLY BOtlND m:m:sy. Witness ~4-r--1 . SydJiey D. capl.an A a.d~C ~ ...-/(SEAL) , Beatrice Caplan (SEAL) Witness Residence Address: 31 't ~l. 0 U<" h "'- C2cl 14o-......s b.... "i 1-".... ""0 '0+,=' ~"' , ""' , ,- .,,'~ . .- ., ..~ r:- CCINtONlIEl\LTII OF PBNNSYLVANrA COUNT'! OF :Dau pj,:n ss. On t:bi.s, the Z day of rill,! u. s 1-, 1995, l:lefore ...., .. Not&;cy Public, the undersigned officer, personally appeara<i Sydney D. Caplan and .Beatrice cap~an, 1U.s wUe, bown to me (or sat:is:f'actorily proveD) to be the persons whose nilDllls are subscribed to the "i thin ins~ftt and. ackl10wledged that they execu:tlKl. th. same for 1:he pu:tposes therein CO!l1:ained.. :of WITNESS 1iKI!lIU:OF, J: hereunto set my hand and offic.ial seal the day and year aforesaid. ~_I,J),. A:...~ 7 Notary PubU My commission expires: (SEAL) - - =:tr....-"'*'" t~:.naTv.1).,oa.e~ =-~eq;res-- t.Iy.......-., , , ~.,. 414621 ,~ i:Jiiii.lMIli 'j ,,~. ~~ "'--~ . : Exhibit F " , , ~ - "L~,' '" ~ '0" " . ~ -i, , ]j, 1.&.' " .'0 "~t!Jlil_:j~~ , CREDl. ,\IE CHANGE IN TERMS A,'~~EMENT Borrower: ~"" ", (TIN: Z5-17691lt) ~I C....p HID, PA nolt Lender: Comme,ce B_t1sbu'll. Nadonal As_I..lon MIIn OIIlceIComme,clel Co$I Cenla, P.O. Box 658t 100 SenaIe AvlOue Cemp Hla, PA 17001-&5", t.- -11 ;j(. f -l (j\ ~ ..t CREDIT LIMIT: "S25,OOO.1I!) . ' DBte of Agreement: June 24. 1998 ~ _pilon 01 E"""'ll ~_. a fixed R.Ie. _.ble Open-end L1n. 01 Cladll Loan 10 a Corpo;al/on wllh i Ctadlll.llllll "" '-5.000,00 iiij[ IO~. " '", Deoctlpllon oJ CoIIeIe,'" a Co!nmIJ'ct,IlaaUlfvlJ)gll,;cco".!!! 14..191602O!1!!l~11a"",q.lIIlD.Qa:and . HypolhocaUOI).anIl CoIIalorll Pledgo bV ~ Sydnov D. Caplan; Personal G__bff'o$o l'iii1t~:t'l'tlli'follitl8o~:'and Coosl.nUna G. J. Touloumas.' 0 1Ill..~pIIOnol Chan"" In1'lllllll; ~lllIi... '..4.ICbJ ~ .4>A;\lli:-AlIlff'ii~~~, ~~~~ by SidnOv D. CaJ?Il!n, ' (7 IntrodllCUon. 'TIi\& CASH Re~e l'lIe-men" __os vour ana 01 cradU (iho'""ciadU Una" or Iho "CladU Una Aa:ounr) uuod th/Qugh!lJ Comn\oICtlBaPld~ldlll;>~, NlilkIiiIIAss~ In litis Agteenaenl. lho words "Ilotr_: "you: 'you,: .nd "Applicant" ",oOi1H<ih ,~~ .1I8<V~ parIOn whO slQ"IItIs~n\, li1!lIli<Ilng oISorrowen _ ab0\'8. Tho words "we," "us: "our: and "Landor" main Commarca Balll<lHIfifiIjwg...... I'IeIlonll Ao.ocIalIon. YOU'ogIH kt 1h'.loIlOwlnlll.,ma and condlllo,,", VI Promi&a",1o P!lY' You plOIn!Je 10 pay Co_ceBanklHerIISbU'll, NoIIonal Assocl.Uon, or ordor, on demand Ih. 10181 01 aU crodllo,dva_ ~ FIHANll'E c;tWtll!lS.~ WlillOl cOOls ond axp,lII8Ilot Whlch you .ra ....ponsible undor Ih!s Agraeil\lNllor undor 1IuI"~.'" \!t\1l!lPO&l' ~ill" ~~yiIUICtt!'ltIllilnit. YO~ '1A!iII pay your Ctailil Una accordlnQ" the paymenl'lllImiuUoIlh tiIIli>Vi. 1t;lliliial,:!iiii,.'il!lliIOli8 Ba",""...,u~M~JiiJIi!IY~h4 ..~IIIrOableon lh'. .....nian!. Th,IS meana we CtIn ,iIlj!llfel1'V one 01 YllU 10 "IOIiiii!illljljl,il,li'.~1llI!Iljt:UII. .."'1, Iii_Ii j:Rllk,lijIViiD'm liiada 10 any 01 you. _ Bor'~e'alIIl\O'be,. any, oll~er BorrOwll, on hill 0' Iilii O\~iO\lm., 10 ~tlia criiiUl'IlJ(., 10 '...il IIiId '....Iva .,adll ailvl/1G8a,ancI to do all o\he' thing. "'ca'I"ry locerrv outlha 1.,1lIa cilllilO AlIre_nl. wa can ,et_ Inv 01 you "'om rISpclrillbUlly undiltlhte A.....mant, and \he olhar. WOI 'amain respo....bta. ",,",","m p~""e,nL Your"Rllo",", payman!" will ba m.onlhly pay....l. of.,OJlO 0' z:no'llo 01 lhe OUlot,IUIdl"" balance on you, p8lllId,Iebllfln9 "'00llllril. WIiIche"CI ............ YOIll 'Mlnbnum Pavmaill" wll"" your Raoular P.vmenl; plus all, amounts pest due. any vcihinllirycrlldltPI8 and dlsaJjlIJyln$i!lll~P'~ and al_ cho'_ You est0810 P4ynolJeSslholJlbo MjnImumP.ymant "" ... balo..., Iho due _ lndIC8led 011 your piisIodIc bJlimllsliol8menl. In any ....nl," yQllr C,edll Un,b.lanca IaUs balowIID.oo, you .graa.. pay yQllr bale... In lUll. AppO~,n 0,1 PaY\l!ll!1Ia. Unlna O\h8rwtu aW.... or raqulrad bV apPllcablli low. pavmenlli and oIho, crodlls wlU ba .ppllacUn Iho loIIowlng ",d." 10 ,.) F1NANCI! CHARGES; lbl any voIunlory _I Pie .nd dllabllltV lnawa... p,eml\lma: Ie) unpaid ptlncip.~ Ond Id)lete Cho""," and 01h8t charges. Tarm. The Ierm oI.yourClodll Una will bagln .. 01 \he dale oIlhlI Agroolllanl ("Oponlng Dalo, .nd will con&n..., until damand lli mada und.r Ihls Agroomonl or unltllhle CtedU Un. Is Iorm!naliod lor any ,....on. ^' Ihol Bmo, or any Uma thoraa""', aU oulalandlng p'Incip.I, occ'uadlnle,aal. any cr.dll Bfo and dIaabliIlv I..uranee premiums, and any 01"'" oulilandlng ch8rQu wDIb. p.y.ble o.damand. R_11lI 01 paym.nla. Ilpaymanlla nol racllvad by Iha dua dala(2OIh ollha monlh) paymontwHl bo oulomollcalv cradllod 10 Iha Caah _loan tom tIia Ch8cklng AcooUi'IL C,adIIUmIl. ThIs Agtoomanl_ . ravolvlng Ilno 01 crodlllor Twanly Flva Thousand & 001100 DoIIo"'(I25.ooo.oo), Which wUl ba your "Cr.llIt llmlr' undor lhlaAgt/!ll,nlORJ. You may borrow ~sl Iho Credlllna,ropay .nv polllon ollha .mounl boaowod. and '&-:bOfrOW "l' 10 Ibo a~nt oIlho Ctadil4Rill VoUr(lledil. l/nl'. 'f!i8l11lilllmulilaRlOuntyou may Nva outalandlng .Ionv ona time. Vou aQlll8 nollo olllll1i1l, ,'lIIluuL 0( 0&...... cradlt .dV~nce Ibol WlI _e your Cladll t:tn8 Aa:OUnIbplance....... yow CtadO lIml\. Your Ctodllllmlt wit nol ba increaSed ~ you """ilfaw you, Ctadll,lln!o _jll II you _d your CradlllImU. you agI" 10 ,_V ,lmmadlololY theamounl bV w~lch your Ctodll'Uno ACcount ""!'8oida your Cladll UmIt, _no we ho.. not vol billed you. I>.t'tr omounl wealar Ihon Iha CladU llmU will ba aocurad bV Ihl A.slllnmanl 01 DepOlU _ounl .......Iog your ptoperIy. CII"'1flII 10 YoIl' C'edllllna. ,Wa may choral yQllr Ctallll Llno 10 P.Y othor In" and coolS IhaI you ara obllgaled 10 pay undor 11\10 AlI,.....nI 0' undor any oIhiIr dOjlU,mont relaled to your CredU Una. Any omounlaochorgad 10 your Cradllllna wIlIba a crlldll.dv.nce and will dlCtli8a.Ih.lunds .vallable, U .ny, und8t \he CtadOllna. Howave" w. hova no obllgollon 10 provldo .nv oI,lh. craall advanCoa tale"ad 10 In IhIa pa'liliraph. Ellocllvl D1a1lU~enl Dala. The wordo "Efl~ve DllII;>ursement Dale" as usad In IhIs Agtoomont lIllion a dolo, a"'" lho Opening D.le, Whon lho Agr_n1Is~ledbr Ullln \he CO""""nw....h o,f Fannsvlvanla lolI.wlng Ihe parfactlon oIlha AoaIgnmant 01 DopoaU Account end \he moatlng 01 al 01 out other c6ftdltlOna. You 18raa and undoraland Ihol you mav not toeal"" .ny cradll .dvance undar you, CtadU llna unll alle, IhlleU"'va DIsbursement Data' oIlhIsAgraomanl Creed. Advanca. After Ihe Eff8GUWt Disbursement Date of this Agteemenl. vou may oblaln c~edlt advances undet your Ctedll Une u follo_ (.) Wrillng . chac:k ""\'OUt doalgnalod chac:klng accounl wIIh ua In axcasa oIlha aV.iabla _d balance In tho accoun\. II lh8ta II more Ihon one parson oulhodzad 10 usa IhIs Ctadfl LIna Account. you awee Rollo glva us contI/cflng Ins"ucflons, sucl1 .s ona 01 you telling ua nollo glve ad........ \he oIhar. " T'_OAR_I,am..le. Th. following ".....Uon 1Im11.lIons will apply 10 a....sing Your Crodll Una bV wtUlng a ChOCk In axcess 01 Vou< chacklng .ccount baJanc8. Mlntmum Advanca Amoun!. Tho minimum amounl 01 any crodU odvanee lhol can b. m.da on your Claollllna Is .s follows; 11??.oo. Fulu'e Ctodll llna ......... Your oppllc8llon lot IhIs CtadlI Llna ..... a..... aa a ,aquesllo ''''''''va anv naw soMcaa (such as ...... davlcaal which may be.....blo .1 soma Iuture time as 0118 01.... sorvlcaaln connacllon wUh IhIs Crodll Una. You uRdorsl.nd Ibol Ihla raque.11I voIuntoty.rid thaI you may........ any of 'haso new _a .1 \he lima they .ra oIf...ad. Vou furlhat undersllind thaI IlulCorms and condlUona 0I1h1s Agroomanl. logaIhar with any spodll. Corma covadng \he now _. will gov...n .ny ltansoctlona m.do pursuant 10 anv 01 lhasa new sorvlcas. ' S8cutlly Roqult_Ia. For IhIa ClodO Una, wa ,.qulra s..urUv In Ihe lorm ola AssIgnmanl 01 DeposU Accounl on Commatca Balli< Savings Account U IDI6Dl!07 and a Hypolhacatlon .nd CoIlaCoral Piadgo by Sydney D. Caplan. You aorlolo the llirms of Iho AssIgnment oi IlopoaU Acl:ounl, aU 01 tho terms and condlUons of which are lncQC'porated by reference In this Agre.ment. ,-= ~~,,~" ...~ '"M~___~ =~. "'......,..""",- ~'.._-^' ,- '-U:';~ --, 06-26-1998 loan No 510021454 CREDIT LINE CHANGE IN TERMS AGREEMENT (ConUnUed) Page 2 Righi 01 &elan. You gr.nllo u. . conlraclual ...curtly Inlal..lln, .nd hereby .sslgn. convey, dallv.r, p1adg., .nd lr.nsIat 10 us .1 righl. UIIe, .nd In",,"11n end 10, youraccoonlo with u.(WheIher chacklng, .....ngs, or .om. alher accounl), Including _llImlliillan all ,accounts hold jaIntIywlth _on. .... .nd',rlII accaunlsyou may op.n In th.lllIute,....udlng however 011 IRA, KAlagh..net lrusl a_onls. Vou .ulltoriza us. 10 the ext.nl permlllad by .ppl_ ,!w, 10 charge or ..toll .U .ums owing on thl. Agr......nt against any and aU such accounls. Padodlc SlIIla~Ills',1I YOU hly!! a balance owing on your Cr.dY Una Accounl ar h.ve.ny accounIeclMly, we wIII,..nd you . periodic slaIemenl. II wlll.how, among OIher 1/1I1ig!i. ...adIt .dvan""", FINANCE CHARGES, alhar charges, peym"" mad.. aU\1f credllo. your -PrlMOU. Bela..... .nd your 'Now B........ Vour .1818111.nhlso wlU,ldenlIly IIie Minimum Paymanl you ...... make for Ih.1 hll1lng period .nd IhI dale II Is due. When FINANCE CHARGESU.g1n 10 Accrue, PIllodlc FINANCE CHARGES lar ....dU .dv...... under your Cledll Una will beglnlo accr,ue on the dale cr.dIt adv..... Il. posled 10 your Ctadit Un.. Thar.1s no "Ir.. rida period" which would allow you 10 avoid. FINANCE CHARGE on your Ctedll Una cradll advaneas. Malhad, lIaalI to Olllormlna lhe Ila!anca on Which 1110 FINANCE CHARGE Will Be Campuled. A dally FINANCE CHARGE will be Imp..,.a an all cradll.dv~ marta under ~aur Ctadll Un.lmpllSld ftam Ih. d.1a 0' ..ch cradR advanca b.sad on the "lI8fI!g.dally balanca' mathad. , Tagallh. .verag. C\8I\y ba/lii1Ca.~~>,II)a,\':!!ll!lllJlng be~nce of your Cr.dll Una Accounlaach day. add .ny new .d"".....and."""*'" .ny I'8Ymenls or credlls .rid .ny UnPaid ANRlC,EcmGES. ThIs gIvas us . daRy b.lance. Than, we .dd up all the dally belanCas lar th. billing eyela and dlvlda the lolal by IhI number of day. In tha bDllng Oyola. This gives us IhI 'a_ dally b"'nce." Method 01 Delerll\ll!tng lhe,l\mOllnl 01 FINANCE CHARGE, My FINANCE CtlARGE Is dalermlnad by applying Ih. "Periodic Aala" 10 IIie balanc. clescnbad ebova. Thin W. mulllply by Ih. numb.t 01 days In Iha blllng cycle. ThI. Is your FINANCE CHARGE ..1auIaIed by .pp1y1ng. PildodIc RIle. Pertodlc R~o ~ CoJte.pclndl~1 ~!lNUAL PEACEN'l'AGE RAn. Th. Periodic ReI. .nd 111. COtr~oridlng ANNUAL PEflCEN'l',AGE RAT~ on yout CtedlIUnaei8~ad upon,.n ANNUAL PERCENTAGE; RAn on r.ngas of bal..... IS .hown balqw. To ablDln lhalllltlodlc r.I.,..". dMdil,1ha Inlatesl fll8 byll1.numbet afrtays In . yell (dally~ To ablalillhl ANNUAl. PERCENTAGE RATE we mulllply lh. periodic re.. by Ih. number of deys In . yeatCdalIy). _lID at BaIan_ F1.... Inler." ANNUAL PERCENTAGE IllIIly P.rl"''' orCortdlUoil. 'A.to RATE A.,. , AlI_neea ,._11. ,a.aoo 11. 0.02740 '" Nolwlthe'lndlng 811'" other pro~laIon Dr tht8 Agr..mena. we will not charge Illter... on anf undlsbwMd loan proceed.. CondlUonl Und.r Which Olher Chlfg.. Mey ba Impoead. Vou, ag'.. to p.y aIIlhe oIher _ and charg.a t_ 10 your Crad" Una IS sallarlh below: Relurned II..... You m.y be charged '10.00 U you l'8y your Ctad" LIne obllg.Uan. wllh . chICle. dt.R, or allier llem Ihllls dishonored for .ny tllSOn. IlI1Iea8 eppUcabIe lew reqult.. . lower oharg. or ptohlblla .ny chatge. Lola Ch...... In acldlDon 10 out righl. upon d.leul~, your p.ymenl will be lele " " Is nol_ by u. within I. deye 01 lI1e .P.ym.nl Du. Dol." 1ll01lln on your po_Ie _.nl. II your paymanlls lele we may oharge you 5.0ll0'Il. oflha paymant. Rlghllo Cfedll Aclv_. Aller "'" EIIecl1va Dlshu..a...nI 00'" wa will honor yout tDqUDS" lot cr.dll .elve.... up 10 your Credit LImII .0 long .s; (a) you .... not 10 def.uR, under \I1a Iarma ollhls Agre.ment (b) IhIs Agr.....nl has nal bDan I.rmlnalad or.uap.ncIad:.rid lc) your CtadlI U... .... nol b.....n(laIIJld IS provldad DbOve .. IhI ..cIIon alll1ls Agre.m.nlllll.d "T.rm." Delaull. W. may dDCIIlf. yoU 10 b... d.faulllf .nv,an. ormor. of IhI follawlng DVllnla ClCCllr: e.) you fall 10 I'8Y. MInimum, P.ymanl when due; (b) an .vent at dalaull~"" ~.r lhaAlslgnmanl 01 D!ipO!iIlAocounl: (c) lha Prop.rlyl. /utlhar ancuifllj8r.d Inenv w.y, valunterllyOf \mIOluntailly:(d) you die; (.) vou iJlAl<e .ny _ Of 1!Ii....dlng, al...iJlAnlionyoilrCredll LIn. eppllCallon: (I) ,you \ifdllllo .ny piovjslOn oflhls.Ajl(8oillllnl or..V _ ligraarnant wlIh 1!8: (g)anv get(\\ihnlDnli."",*,m.nt, Of ......1Iol11o issuad lIQalnsl any meterlal....fCIWnad by you: (h)yauoiicQilld YO!lfCiellll LIn1ll: (I) you m.lor belll<tuPlcyOf oll....Inacil~.nCy rallel. or .n InvolunlllfY peUllon under IhI provlalans oflha Fed"",1 BlInkruplcy AcIIa m.d egaln.1 you; or m we, In good lellh, d.... _v..l....ure. Llndar'. RlghlD. If you If. In dal.uII, we will ..nd nollea 10 you saUlng forth a R... panad 01 .t 1,...llflltly (30) days within which .uch del.u11 may b. cu..d. Durlnglhls cur. pariod,WII,,""1 noIIca, wa may 'uapandyaUt Credll LIne .. provldad balow. II.uch dDlaull10 not cured during Ihls parlCd, we may ollhar I8rm1.... or conUriue .uspenslan of your Ct.clII Una _nL (Ill Suapenalon. II w. .uspend your Cledll Una, vau w1111os. lha tlghllo oblaln lurlhar credll .dve..... HawllVDr, 011 olher Ial... 01 Ihl. I\llf..mant will remain In alleel .nd ba binding upon you, including you, Ulbllly lor .ny /urthar unauthorized u.. of eny Ctadll Llna ...... _. " Ch) T.tmln_lan. If w. Ialminal. YOUt CtadR Una, YOUt Ct.dU Una wll ba ....pe/iclad end lha .nllte unpeldbel.nce 01 vour Cr.dR' Una Account wi. be Imli1Ddlalaly d\lllendp.yebla, wllhoul priOf notlea .......1.. m.y be tDqulrad by law, arid VOU IIQr.a to pey Ihat .mounl p1us.U FINANCE CHARGES endalhar .mounlsdu. under this Agt......nL - (cl CoIf,ecUon Coal.., Upon d.l.utl, w. may hire or l'8y .amaone el.. 10 help coIIDClI yout Cr.d11 Llna Accounlll you do not'p.y. You also wlU p.y us lhatomount. This lnalud... .ubjDCIIo .ny Ilmll. under appUceblal.w,our .1I0rn.ys' I... anet our 11IQ.llllp..... whllhll ar nolthare Is . Iew.uII, Including .llornavs' .... .rid legal Illpenses lot benkruplcy procaedlng. (Includlng .,Iarlll 10 modlly at vacal. .ny .ulom.11c stav or InjuncUon), .pp..... .nd any .nlIclpalad posl-judgm.nl coIIeclIon ....I.... , . (eI) Ra" Iner...,.. In addlllon 10 our olher rlghl. on daf.u1~ wa may Increas. Ih. Int.....1 releonder Ihl. Agr",!manllo 2.000 porc.ntag. palnls ov.t IhI llien .ppUcable ANNUAL PEACENTAGE RATE. ThI Inlera.1 t." will nol.....dlha.......um ral. parmlllad hy .ppllcDble I.w. If w. do nollncrease the Intere.' ra" on default; II wID cOOUnuG althe raleln effect as of -the .te we declare a dBfaull. Del.y In EIl_m.nl. Wa may rtaley or welve lhe an'orcement oIeny 01 our t1ghla und.r this Agreemanl wlI""ull05lng lhol righl Of .ny other righi, 1/ we daley or walVa eny 01 our righls. w. m.y enforce th.1 rlghl .1 .ny Ume In Ih. fulura wllhoul edvef1C8 nDlloa. For e'''''''pla, nol lormlnaUng your .ccounl'ar non-paymanl will not be a w.lver 01 our rlghllo lermln.l. your account In IhI future U you h.ve nol paid. TermlnaUon by You. If you Isrmlnalelhla Agreement, you must notlly UI. Desplle lecmlnaUoo, your obllgallona under this Agreement WIll remain In ,uti force and effect unW you have paid US an amounts due under this Agreement. Prepaymenl. You ~y prepay aU or any amount owlng under this Credit Une at any time without penally, except we will be enUlled to receive aU accrued FINANCE CHARGES, .nd olhar !l'>arll.., If eny. P.ymenfa in excess of yo", MInimum P.yment will not relieve you 01 yoUt oblig.Uon 10 canlinu.lo make your Minimum Paymenla" 'leael, Ihay w1U..dlJCalhe principal bel.ilca owed ." ~ Ctadlt LIne. II you mark. chICle, money order. '1', olher Instrum.nl sanlln p.vmenl wlIh ~ . "u1r or with similar Iangu.ge, w. msy eccapllh ':, .nI..rid you wIII'.maln abllgal.d to p.y .ny ,LiXL ~~ " "~ ~~ ~_.",,-.. .- ~.,- - I "~ '. -<.-" '. ~Ji,! 06-26-1998 Loan No 610021454 CREDIT LINE CHANGE IN TERMS AGREEMENT (Conl/nued) Page 3 tutlhor _ owed 10 u.. Noll.... All nolklel WIN bo senllo your .ddress .s shown In you, er.dlllln. .ppUoaUon. Nollces will be mailed 10 you .1 a dlfferant .ddress It you give us wrlllen nollce 01 a dltfa/onl.d_.. You agr..lo advls. us promplly H you changa your malUng .dd,ess. er.dlllnlormellop and 'A.laI.!! Mallor.. You aulhorWl us 10 ra/....lnformaUon 10 olhers (such.. 01.11I1 bur..us, ...rchanls, and olher financial InsUlullonS) .boullha s1e1~ andhl.tory 01 your Credil L1na Accounl. You agr.. Ih.I, upon our '.quasl, you wig provide us wllh a curralllllnancla/ slalamon~ . now crodllapptIc8\1on, or bDlh, on torms 'prpvldad by us. You .1.0 agr.. w. m.y obleln c,.dil r.port. on you .1 .nytime, .1 our _ oplkin .nd 8llP_. lor',ny taliso.; In....dlng bul nol'llmltad 10 delerminlng whalhor Ihor. haS bo.n an adv."....hanga In your finanCIal COrIllilion. Basad upon .mal~ .d.... ""n9a In your financial condlllon (such as la'minaUil/l 01 _Ioymont or Ioas of Incoma), we may .u.pand your CradIl u.... w. may require. now appralsol 0I1h. Properly which ..cu,.. your Cradllllne .1 any '1m.. including .n InlGrnalln&poction. aI our sora opllon and expanse. Tran.,.r or AHlgrun.nl. Wllh"!'l p,lor nollca or .pproval tom you, w. r....... Ih. t1ghllo sail or Ironslor yoUr Cr.lllllfno Accounl to ...fhar Iandilf,', ..tily.orp~,li!1d 10 ""sign our rights under Iha Asslgnm..tol DoposH Aceounl. Your righls Undor IhIs Agr......nl bofong 10 you only and may nol b. Iransla/rld 0( .sslgned. Your obIIg.Uons, howa...., are binding on you, hairs and 1eg.lropresant.Uves. Tox Coo,"","anc... You' undetaland lhal nallhar Commerce B.nk/Harrlsburg, NaUonal Associallon, nor any 0/ Ita .mploy... or agen... me~.. any _.....lotion 01' ~an\y whillsP'8l'erconcernlng Iho lax consequ.""". of your oslabll.h1ng and u.lng your Cr.dll Una, fncllldl,ng lho deduCUbJUly 01 Infer..l, .nd 1""1 11llI1h....Cl:illlmlic. SIIlk/Ha,riibw'g, Nallonal AssocIaUon nor lis employee. or ag.nls wlU b. liable In lha .v.ntlnl.real on you; Ci.dll L1n.1s .01 lloducUbre. You.hi>u1d consull your own lex .dvlsor lor guldionc. on Ihls aubjecl. ' GovomlileLA",. Thla I\",aa/lllll' will ... govemldby hllleral law IIlld by "'a /aWs 01 ,he Commonw.allh 1>' '1>""..,lvanlo. Tho Credll Line w/dCh 1o.......bjKI o"llIa A",._nlhU bean .pplllld lor, constllerad, .pprovad, and mad. In "'. COmmonw.allh 01 Plllnll'lv_. IRlarpralallOll. Tha..mesgl<Janlo Pi<lQfapb. Clt &IICIkills In IhIs Agroomenla'llor convenlenc. purpo_ only. Thoy are not to... Usad 10 Inlarprel 01' deOnolhe provlalona oIIl\1aAgilil!m.... You .9rllOlh.llhI. Ag,..m.nt, log.lhor wllh 111. Asslgnm.nl 01 Deposll Accounl.lslha bOIl ovId'nc. of your agr..~Wllh us. II. ~ft~d.lhal any provision of Ihls Agr.omonll. nol v.lid .r ahould not b. ..f.rcad.lhal lacl by llail1f will nOt maan thai the rul ~ ~ltUs _~e-8mBnt.w1ll not__be Valid or enforced. Thlrefore, a courl : may entorce Ihe rHt of the provisions of thls AgrIj8_msnle\i8n, II-a'JMov~on ol,llIIs Ag,r.......,..' ,'."', ""', be ',0, ,Ulld"10., b,...,1tlvo1d or lIr1Ilrll,"",. .8b,lo. II w. go 10 COl!rt lor Ill' r.., SOIl, w. can u.. a. copy, ,li/ine. ,. dar _Orllil,.' . 01 any periodic ala\8m.nt,thle I!llraalll4ri~ If1.Asslgnm.nl Or D.posll Ace"unl, 'or any oIher doc""",nllo provo whal you OWl us or thll.tra_n has laken pJaCa. T~. copy, mIclolUm, l!@toflcl1., or oplkiel:1rilaga wlP ~vo Iha som. valldlly a. fha orlglnol. You .gr.. lhal. ""copt 10 lha ""Iilntyou can show lhar.is. bWlng orror. yOur moat cu".nl p.rIodlc biUlng .1.I....nlI. Ih. basl.vidonce of your ob/lg.lIon 10 p.y, Conllnulng Volldlly. Excoplal"'IPro.ofY cI1angedby lhis Agr.."",nl,'lha lorma allho original obPgailDn 01' obllgaUons, including aU agreem.nla ovIc11lna.d 01 .eoudng lha ob!lo.allc!lJI'~)" ro",",n uIIChlinga,d .nd In lull lCi'CI and .11001. Conl.nl by l.ndar lo ftrla Agr..m... ClD8S nlil w_landar's dghllo IlncIPl!'lOr""'OOI ol'lhooliUgallon(l) ",ohangad, nor oblig.te Lender lo make any ,utur. changa In ferml. NoIhlngln tllla Ae/llII!!"ant will consUlutail ...cllO. 01 lho ObillllillGn(.), II Is lha InI'!nUon 01 Londorlo retain alliable parB.a all makers and oncIor.erso/ lhil orlQlnal'o~tIiln(I), IncIUdlnllllCCOmmodetion p8I1\aS, untaU a par1y Is ..pr...I, r.~sed by Lender In wrillng. An, male", or andoraer, Includmgaccomm*uon lllakers. wBl not b. raI."".)I'l!v vtr\ll. 0\ IIWAgr..monl lI.ny ~on who IIonod thl original obligation doe. nol sign Ihls Ag""".nl boIo\ri. lh.nal;!iOtfOna signing bll!,lWIlICkn, iiWl.dll.lhlillh~,' AQtee.. ,," m..11s glvencondlllonally. based on Iho. r.pr....taUon 10 lender thol"," non-stgnlng p.ay collllil1l~ ID Ih. chanil.. andprcllllslqns or Ihls AgrOllllanl or ot/lorwlse wiD nal be rela.ised by II. ThI. w.l_ .pplles nol only 10 .ny Inlllal oxle_, modlllcaUon or r.IoilSa, bUlalsO 10 aU .uch aubsequent_s. Acknowladllrr..n' and ......erutm..... You uncleralllnd..d .gr.o',olho Iotms .nd condlllon.1n IhIa Ag,_nl. You ....nOWledg.lhal, lubjacllo .ppbbl8laws, ..,..Iia\lll;lh!iorighllo changa lh.lormeand condlllons,OIlho Cr.d11I.1.. pragrem. You alsO understand.nd ~g...lhal \IOI! may b. .ubjacl to oIher .eomenl& wllllus regilding \r4nS1ar ""INman" or _ass dovlqea whIch may 10"'. your Cradll Uno. My ponion sIOnlnil- mily req....1 . modlllcalkin to Ihla AgrUmanl, and, llgi.nled, Ih. modlficallon wiD bo binding upon .0 .Ignors. By algnlng Ihls Agr......"'. you ....nowIedge Ihal yOu ha.. r..d IhIa A_I. ' This Agre.menlls delld Juno 28. Il108. THIS AGREEMENT HAS IlEEN SIGNED AND SEAlED BY THE UNDERBIGNED. i!(a1,!J;j"" ":i'(llEk) 8 ( Corporale Seal) FIll:.d RaIl. Un' of Cr..dlt LABER PRO. A.g. V.s. ,.1; & T.M. 0''-. Vet. 1.21 ~ 18111 CFI PtoServk;:.i1.In~. Aa... ,...rv.d.IPA~02' Fa:,UIKOS.L:N U.OVLl ~ltv'~--~"" ....~ - , ~ ".,,",, --' ". ",., ,~ ' - 06-26-1998 Loan No &10021454 CREDIT LINE CHANGE IN TERMS AGREEMENT (Conllnued) BILLING ERROR RIGHTS YOUR BILLING RIGHTS KEEP nlls NOnCE FOR FUTURE USE Page 4 ThI> nollce COIIlelna ImpaJ\allllnlarmallon aboul your rlgl\Illand 0111 r..pom;lbllillti under Iha Fair eredll Billing Act. Nollfy US In caae of errors or quesllons .ooul your bill. II YOII think your btIt Ia ..rOl\\J, or H yOlI needmore lnlormallon ebOlll a lranoacllOn 01\ your bill. wrIle lI& 01\ a ......ala _I a' P.O.1lox B69!l. 100 SanateAvenue, Cem!, HIll, PA 17001_" ellhe addrllss Isled on YOlll bill. W~1e 10 us .. soon.. p..&Ib.. We nWat heer kom VOII nalaler then sixly (80) days .der wa sanl VOIIlhe a..1 bill on whlch lho err.. or problem .ppaared. Vou can tehlphona us, bul dolng .. wIU nolpreaerva Vour rlghla, In yalll laHar. glw us lha laIlowlng InfarmalloA: Vour name and aCCOUR\ numbel. The daIIar .mounl of lho .lI&pae1ad or,or. Oncrlb8 the error and explain, it you can. why you believelherels an e<<O(. 11 you need mor.lnformaUon, describe the Ulm you are noalur. aboUt. ' I! yau have .llIhorized us 10 pay your bUI .UlomallcallV from your ..\lings.. chocking accounl, YOll c.n Ilop Iha paymsnt on any amount you think Is ""OI\\J. To .Iop Iha paymalll. your \8Iler musl raach U$ II.... (3) buslnsss daya bala'a Iha a.'.mallc paymenll& _10 occur. . Your rJghlll and our responsibilities after we receive your wrlUen nOlloe. W. nWat ackNlwIedge your _ wtIhln thitlv (30) days. uaI8u wa ha.e ",,"_the ."or by than. Within nkIely (901 days. we must ellher corract tha error or ..plain why wa bea..e tha bill was c""act. ' Mer wa n>oeIve your 1a11ar. we O8MaI IIy 10 collact any e!'laun! you quesHan. or raporl you.s daIlnq-'. Wa cen canllnll8lo bill you I.. \hI amoulll yau "....uon. Inclucll/1g ftnal\C8 _QaS. .nd wa can .pply .ny Unpaid amounl lQalnsI your Cr.dll LImft. Vau do not ...... to pay .ny qUIIBaned .maunI whUa WI ora Invaallsallng, but yau are 111I1 obllgaled 10 pay Ih. p.... of YOlll bllllllal..a nolll1 "ullllon. " we Ind thai we mada a _ on your bUt. yOlI wiD no! heve 10 pay any CInII_ cherQaS relaled 10 any "l18$Ilanad amount. II Wa dIdn' make e mls...... you may hava to pay ana_ charo... and you will have to make up .ny mIss.d plymonts 01\ lho "uasUonad amaulll. In allhar caso, wa WID sand you a slalamanl of lho amounl you awa8l1d Iha dala 011 which Ills duo. I! YOlllalllo pay IIla amOUlllIhaI w. think you ow.. wa may rapart YOll.. daIInquonl. However. H our 8l<PIanaUan _ nat II8Ilofy you and yau wt\le 10 ua wllhln tan (10) daYI tailing us Ihal yau ,111I raflJU to p.y. w. musllon anyan. w. report you 10 1/101 you ha.. a quasllon about your bill. And. wa muslloU you lho nama of .nYOlle w. raparted you to. W. musllell .nyone w. r.port yau 10 I/Iell/l. mall.. has baan _d ".Iween ua whon U lnalIy Is, If we d0tl1 IOUow Ihe$8 rules, W. can'l collect It). drat $SO oIlhe questioned amount, even U your bW w.. ClOrrecl. . -,. \ , ___.. M~_"~.__.... . ~ ullIr ~ ~, 0'; Exhibit G ~ "- ~ ,;;,J "1 ilu-~ , w~: , " _1'- ~ - ~ ~ -ffill: "'~iW;ti'I#it';~:r " Borrower: Sydl'ley' D. C'P1an (SSN: 211-2Z-8eO&) 3128 oum.m ANd Hlrrtiburo, PA 17110 Lender: Commerce "'_.'110"""'11__ _O_,..COO'Conler P,O.8oX'1uI 1ClO sen." A..e~. Clunp HIll. PA 17m-O... THl8i;IUSINES81.OAN AGREEMEMT batwHn Sydney D. CIpJan ("Borrower) .iIcI Cormmlhll ~8bU'" NItioftal,AeaQdIlfo" ("LIIn:der") It ~ and executed,an the following lenM and concllUOna. Borr~r has qcetQd pnor-cilt;lrriJ'fClIt 1QIna'~'~i\4ir'.t'tI"-'~1CI to lemItO' for . __ _ or ..... and _ ,_ ............... """,","",1lU!Ia ~,...,.. __~ aiW..lIIliIi", SChtd:ule .niche- eo this Agreement All such IoJnI and f1niRCIII accommH_II~_Iims. ~'g'''''' ~11h III' f,-tun, _ . '. II~ljJ ~on. trom ~ir' I~ 80J'r0wer, life referred tD In Ud..Agreefll,nllndWldUilIy ~-:th. ~.. ~,II_'Clo,t~IV~:''': Ifflt: ~.." Borroyter un~~d,' ""d -!'HI t~: (8) In ar.nllng, r8l1eWlng, or m.~ng enyl.Qtli1.t.en"'I.,r~u U~\~":~l8IJCin'.. warr__. .nd:'q~nl...1ia lit fOrth In thla Agfeemenl; (b) the grantlilg, renewrng, or ....,Iid'nD:oriiny Lolli bY ~r '~:"!:tI_iMI .. _',to Lenda1"_ jUdoman' ... _...;... (') 11I_ Loans............ ...... _Iim ....,... to ... _In, _.... COJIdlt1on. ollh" .gtelMnt. TERM. 1111& AQJwjn8nI snau be eftecUve as of July 22, 1"8. and th.n continue ihBIBafter unUI sJJ IndabJednsss of BCf10WII Jo LlIlder hti b$fll perlorl1l8CI1n fun ,"d lht p&rtie5 terminate this Agrumenlln wrlllng. DEFl~TIONS. The foJJowIng wordS. shaB have the fOllowing meanings when used In Ihls Agreement. Tem'l& not oIherWlu daJlnsd In Ull$ Agreenltnf shall have lhe meanings attrit;IUled to such terms In the Uniform Commerd&1 Code. .AJI rsfetel'lCElS to doll,r amounts shall fYIllan amounls In Iawrut money of lhe United States of Amenca. Aareemlllll. The word "Agreelfl8flr means this Buslnesfl Loan Agreement. as Ihl& Buelneu LtIllIn AultlimElnt may b. 1.fT't8'nded or modified from Qms to lime. togsUl8I' wfth all exhibits and schecIulea atlached to this Sustness Loan A9feemenl ftom Ifme 10 limo. SoffQWer. The word "BC>>TOW9f" means SycIney O. Caplan. 'The ward '1!0I'l'0WI1" 81&0 InclUdes. a& applicable. an subsldlarles and I.ffl1tates of BOJl'C)wer u provided beloW in the paragraph lil1ed "SUbSIdiaries and Alftlla.." CERCLA. ,... word "CERCI.A'" means the Comprtlhenslve Em.1rOl'1msntal Respon", Caltlponlllltlcu,. and L1abUlly Act of 1980, 8S amencled. Cutlel"..I. The word ~Cotlateral" means and IntllUdeB ~holJlllmtlaUon all properly and assets gtanted Q_OollakMlil,S8CUrlty for II loan. whetl'llDr real Ql' personal prDPsrfY, whether gra.,lad dlrecUy or fndlr8ClIy, whether granfed now or In fhe future, IIl\d whe~ grcmi8;d In_ttie form oIa'~lty Interesl, mortgage, dfKId at_trust. asfltgnment, pled~. chattel mortgage. chltkll lTU$l,lactor's lien. aqulpnHlnllnJ8t. eOJtdIllOnBl sa1e.1rusf ~t. Il8n. ctwQe, 11M or IJIIe 18f81lDDn contract, Iuse or conlJgnm.nt Inlended as a &BCI.Irily device, or any olhe' seourIl)I or UeO inlliest WbatJDeVlW'. whether created bV law, contract. or athelWile. ERISA. The word "eFlISA" means the Employee RelIrement Intome Securlty Act of 1974.11 amended. event of Del8UlI. ThI wordli "Event of Defaull" mun ancllnclude wlthoUlllmllation any Of !he events of OefaUll set IOflh belDW In the QCtion tiDed "Ev!;NTS OF DEFAULT," Grantor. TIle word -Grantor' means and Includte wlthoulllrNlatlon each and all 01 lha pemons or entllles granllng a Security Intereslln any Collateral for fhe 1nc1eblfulne8a,lncludlng Without Ilmllatlon ell Borrowet& gl'8ntiF1Q such a Security IntiresI. GUCWCInlOr. The word "Gulll'anlor" means and Includes wllholJt 'mll&Uon each and aU Of the guaranlQnl. sUrell8s, and accomModaUon parlles In coMeollon with any Ind:ebledness. Indebledn.", The word 'nclebtedneu- means and Includes without ImllatlQt1 aD Loans. lOQBther wn~ a' other obItcaaUonl, deb. a_nd IlabIlUeI of BoRower to L.endSf. or IJ'lY 0I'Ie or more Of it\eru. as weD 'as.81 clalms by Lend_ agaInsl Bonowsr. or any 01\9'01' more OJ' Itten\:_ wti8\her ,now or t\efealler existing, voluntary or IlMlluntarv. due or not dUll. abBOlutil_Of COnllngenl. HqUlda,l8d or un_hquldlledi Wf18II'iel' Borrower IMy be I1abI8 Indl'AduellV or Jointly with others; WIlelher Borrower may be obllgited at a Quarantor, SUrely. or Olmirwll$l: wllelher I'ICOV8fY upon such I~ may be 01 hftaller may bsQcme bane4 by any statute or JJmJJallom; and whether suoJ1lndsblBdness tnay be or 00981111 may b8C0me olherwise unenforceable. Lender. The word "lender" means Commerce Bank/Harrisburg, Nalll'JMal AGsoclal1Qn, Its successors and assigns. Loan. 11'19 word '\.0llIn" or '\.cana- means and ImlUdes without IIrnl1atlon any and all cominercta.lloans and finance! accommccf,llons from tender to BotrOW81, whetbtr IJOW or h.teafISt exllllifl9, tnd howe\lel' evidenced, I11c1Udlng WllhoUl Ilmltallon Ih05lil loans Il'1d llnanclal IICOOlTlmodlllons desCfib$d hereln or deSGribed on any exhIbit or schedule a.ttached to this AGreement from Ume to time. Hate.- The word -Nole~ 'meant and IIlcJudl!$ wllhoulllm/latlon Borrower's promlslorY nole or notes, II any, evidenclng Borrower'!: Loan obllgaUons 11'1 favor of Lendar, a8 well &$ any Sllba1llU18, replacarnent or reHllIncmg note or nOle& therefor. P8TmJJled Uent. The wOKfa 'Pennllled LJena" mean: (B.l liens and ~Iy 1nlerea1s securing Indeb!8dness owed by Borrower 10 Lender; (b) DeTlS for taxes, nsassments, or slmUar chlVg8S elIher not yet due or being Clonl$Sled _In good fal,II'I_; (e) U~ of malarialmen. lTI8C~nic$, warehoUS8tl'l.8n. or carrlef$. or olher IlkellElns arfslng In 1tI._ordl~ COUI'IEl-Of bLllln~ and l(io;ut'-na._G~~Il",__~h'l1G riot ve.tckil!nqLienti ld) purchase money llel1$ or PUrch!l1it money securffy Inf8i"e&1s upqn, or}" any'propei1Y acquQd,or:hfI!d br,-~GttV:iW8I'.l.11 ~ or~,,-.ry COtlmf 01 bUSIness 10 sec;ure Inde.btedness Qul$tancllng on the dat.,~ Ih" Agreement or per,m~ to biI,lncurred urtder_Itte,~~gll:lph of _Ihls Agjeemenl bd "Indabtedt'les' and,tlens"; (e) ltens and seourlly rmer981$ which, as oI~h8 'Clate <'f lh1s Ag~ee1'l8m, have_ bien dlSdoHcl'lo alid tpplovtd by the Lender In writing: and (f) those liens and security Interests which In the aggl1lg8.te consttlute an Imma1eri81 and Inslgnlflcant monetarY amount wfth rasp8cl to the net value of BOlfowar'l elM. Relaled Documenls. The word, "ReI.led Oocuments- lTI8IfI and lneluda Wilhoul Dmllallon all promissory noleS, aedU' agreements. loan agreements, enwonm,anlal l1g""ments, guaranties, gecUriIV agreements. mcrlglQlii, deeds- of trust. and al alher Instruments. IQRl8l1\8nt& and documsnts, whether now or hel1f9:fttr OXlSUng. eKecutBd In conMCllon wllh the ~na5B. , security Agreement. The wordS "SecuritV Agrsemtnl" man and Include wlthout UmUallon IlIl)' agreements. proll'li&.8S. cCMllnanl$. 6IT&ngements. understarrdfngi or other agreelTl8nfs. whether CMSfed by law. conIract. or olhe1wlsl, eWdsncJng. governing, repr~, (}( cutaftng a SecUrity Interest. Securfrv 1ntereBl. The worda ~Sec:~lIy lnlemt" mun and JncWdB wJItloUt IJmlleJIon MY type of coIlaltltaJ S8CU1t1y, wheJh.er In Ihe forM 01 a JJ&J), charge, mortgage, deed of !rust, flSSIgnment, pledge, ohallel mcJJlNII, challel trual. factor's Ren. equipment frUat. cortdltlonll sate. trust receipt. lien or lllte ratentlon co"'ract. lease Of conslgnmenllntended as .. securlly dlW\C8. or any ether SIC1Ilily or lien 1ntIr851 whatsoever. whether created by law, contract, or otherwise. SMA. Tha werd "SARA" means the SUPerfUnd Amendments and Reaulhortzalton Ad. of 1988 as now or hSf8Ifbtr amended. CONDITIONS PJ\ECEDEN1' TO EACH ADVANCE. lend8r's obIlgaUon 10 mike tht InlOalloan AdYanct: and each SUb88quenl_ LOIn Advanca under Ihls olQreement Shill be Subject to the fulfiUmenl to Lender's sallslacllon of an of the conClntons sel forth In "* ~l88mBnf and In 1M ReIa18ri ODcumenls. Loan C1ocumenls. BOlTOW8r shall provide 10 L.ender In farm sallSfaClory fo Lender the 1aIlowlr!9 docU..ms for the LoIn: (8) 'he Note, (b) ~urily AQrwmsrtls Qf8IlfIog to lander security lnIB10fts In fhe CoIII!erlI:l. (t) FInancIng Staftmtl1ll ".".,.nv Lem:fsr's SecurIIy JnteItIls; (d) avldonce 01 InsuTlI'IC8 IS requlred below; and (e) any other docUmlflla required under 1h1s'Agreemtnt Of by Lender or lis counsel. Paymem 0' FIlM a:mIllXpMH8. ~ IhaJI have patd 10 Lemtsr .. lees, oharDIs. anti o!hIr expenpo whJch sre then due ami payabJe as apecifleclln Ihlt Agreement or any Relaled Oocument. ~ .and Wmlldlu. The r8PTPBnlaDons Ifld wamll1JJu set fo1Ulln !his Ag1ttImInt, In the ReIattd Docl.lm8nll, and If1, any document or cerllftcate dell'N8d to under under this Agreement a11lrue and Cl)I'rect. No Event or DeMult. There $haJ1 not exist at the 111'1'I8 of any advance a condltlon which would constilule an Event of Delault under thlt _. REPRE$!NTATIONS AND WARRANTIES. Borrower represents and warrants 10 Lend... as oIlhe elale cI this Agrwemenl. _u of fhe clall of each dIsbUrsement of Lolll'lllrClOMds, as of the date at any renewal. extensIon Of modification 01 any La&n, and at aU times any tnllsbtedness exists: OIgan1za1loQ. Borrower Is an InCIMdual borrowing lor commerclal purpaaes. AuthorlmUon. The 8lf8Clullon, delivery. and peftOn'nInce Of1hls Agreemenland all Related Ooc:umenls by Bon'ower, 10 the extent to be ,a-=ullld. J. ~,. ,~ ~ -- ..., , , ; - '~lIlii~ "-,, ;'li~W\i@.#k;!, dElllV8l'ed or performed by Borrower, have been duly authorized by all neceuary action by Bo<<ower; do nol require the C<lnse.nl or approval of any olher person. nlgulatory aulhority or governmenlal bodv: and do not conlllcl with, resulll" a violation of, or conslitule a dafautl under (a) any provision of any agreement or other Inslrument blnCfing upon Borrower or (b) any law, oovemmenlal regulation, court deoree, or ordar applicable to Borrower. Fln8llclallnlormallon. Eac:n financial statemenl of Bonowet supplied 10 Lender truly and completely dlscIosed Borrower's financial condition as of the date of !he sl.ment, and lhere hafJ been no material adve,SI changa In BOtJ'ower's nnancl&t COAdltil:~n SUbl8Quenllo lhe dale of the mO$I recanlllnanclBI slal8ment suppllad to lender. Borrower has no material conUngen) oblrjalionli _epl as disclosed In ,!,Ich ftnanGlll itBtemel'lts. Leg_ EffeCt. Thi$ Agl'89lT19l\f constuules, Bnd any Inslfument or agreement required hereunder 10 be gIven by Bori'OWlr when delhi8l'ed wMl conslllule, legal, valid and binding obligations of Borrowerenlorceable agalnsl Borrower In acoordanoe wUh Itlalr reepecllve terms. Properlles. Exoapl as contemplated by IhIs Agresmenl or as previously disclosed In BOlTOWer's financial slatemsnt& or In WftUng 10 Lender and 8!1 ,acc8pled by Lander, and lJXC.BP1 lor plO!)erty tax liens for !aXes nol presenUy due and paYlllble. Borrower oWna' and hils 9C1Cd t1He to all 01 'BcrTOwer's propartles free and dear of aU secUrlty Interests, and has IlOI executed any aecurlly documents or f1tw:nclng eleleimenll ~lallng to such propertln. All of BolTOwet's properlln enl Iftlld In Borrower'lllellal name, end Borrower has not used, or nled a llrianolng sl.lemen' under, env other nBmllOr alleBst the last flve (5) years. :HlZIfdoue Subltemes. The te""1 "hamrdoUl waste," "'hazardous SUbllance,~ "disposal: "reIease,~ and tlfhltllJened relell58,~ as used in lhis Agreement. shall have the same meanIngs as sellorth In the "CERCLA,~ .SARA," In. Hazardous Materiels TnlnipodaUon Act. 49 U,S.C. Section :1801,81 88Q., the R8!lource ConseTVallon and Recovery Act, 42 U,S.C, Sectlon 6901, et geQ.. or other applf,c:abte sl8le or F.cI8r8Ilawa, rtIles, or regulattons adopted pursuant to any ollhe foregoing. ExcIpl as disclosed 10 Sl'ld acknowledged by Lender In wflllrig;,BQfI'~ lllP!'esents ancl warranls thaI: (a) Durlng_ the period of BOITOWer's ownership of the propltJtles, there has been no use, genitnlUbn, manufaCture, stota9t, ,treatment. diSposal. release or threaten9cf reIeas8 of any hazardous W8$le or substance by any pjpOn on, under, .bout Cl( from any of the propsr1le&. (b) Borrower haG no knowled$J8 of. or rsaaon to believe that thlfe )1as ~n (I) any use. generation, mIlriufaclure, 810~g8. lreatment, dIsPosal. release, or Ihteatened 1lIl8ase of any haZardous wasle or subslance on, undw, about or from the ProPG~ ,by any prtor_ owrier& or occupants of any 01 the properUeI, or (II) eny aclull or th....IBMd liUgallon or cfalms ofany kind by any, pa~n tehiUng Io,__h', matters. (e) Neither Borrower nor a.,y tenant, conlraclor, agent or other a\lthorlzed user of any of nit propartleS shall ~ ~; maI\Uf~; stare, I., dispose oJ" or ,e1eue any hazardous waste or subatan08 on, under" about or from a",y or 1h4-prop'8rtIe6j and,anv'~W;h:.cU~-t.tuiD:~~ GOl'lcuc:tecl in compHanea with a1lappllC$bJe redaral, slale. and locaIlews, regulations. and ordlnances. InclUdIng_withOut lIill1ta1kln Ihd8e II.Ws.,r1$utatltins and ordinances described ab~e. BorlOWlr aulhorl288 Lender and Its agents to enter upon lha,prop8l118S kl ri'iIke~sUC!' ,I"!~Q(II~;irid: lests 8& L.ender may deem .ppropnate 10 detennlne compliance orlhe ploperllM Wltll this seenon or _the AgreetYlenL Atfy J~lIo~ ~ tells mid. by Londor Ilha1Lbe al80rrow8f"s expense and for Lendera PUrpoeBl omy and shall not blJconstrued to lfr&ati'lny ~11IW"'ot ti4b!_lV "1'1 Iht'pirt of Lender to Borrower or 10 any,olher pefSOn. The A1IpresenlaUons and_, W'BffBnUet oontllned- ~n :~:-~C1:~i'1 ~~ _~~'_d.IJfIJG'nCe In Invesllgallng 1118 prop8l1leS lor haZardous waste and ha2ardous subslar!C8s. Borrower tle~ (a) ".'a;rld;W8t~"IIny.M_~'i;!!Ih'riI_liQ(lInll 'Lender for Indemnity or conlrib~on In the. ~nt ~OrroWIlf,l?ec,,",-es Rabie for Cfean"P or ol,her',aoitS"uricter_al1y, slJch-I..Ws,-~ (b) ~ to Indemnify .nd_ hold harmless Lender agah'lsl,a~y a~d aU c1alms,-lon"B9, 1,labMltiaa',$m,ages, p~les..and -~.ns;s_w.~~"U1"d.(,may dlriiC11Y or Indlreolly suslakI or SUIIef'. rMUIlI.".9'frOm a b,... ach 01 this -secUon of the. ~rllmanl or as I. _OQftIl9q. ,,~".'I'!ce;or. ,a:ny.,;~,,,:,,SlfJ "~,.' ~,',".'. "'"".' ",utaCtURl.' storage. dsposal. releue ot'threalal'lad release 01 a tmardous wale_or subslan,ce on the prQp;irtI.. The;" ptMo", ofthit'"IBBCpon oIlhG Agreement, IncludinG the C!bl)gallon 10 Indemnify, shaH suMve tile payment oIlI\e Indlilbtednel!Hlnd ,t~ _kk'ri1in~Uon Ql' ~on ollhls Agmmenl and rin not be afficlecl by Ulndet's acqulslUon'of any Interest In any 01 the j)roperll9s, whether by fDrCloBure-or otheiWlse: UUgellon and Clatma. No 11If~lIon. claim. InvestlgaUon. admlnlstrilJve proceecfing or s1mllat Ictton, (Including' Ih. lor unpald_-taxlSl agalnst BOl'TOW8( Is pending or ttnafened, and no other evanl 1148' DCCurred which may materl8llY ad~Y ,affeCt 8OrJiM:ar'$ ",l'!ailClal aondllion or properties, olher lhan IIl1gaUon, claims, or oIh8r events, If any,lhat have bee., discIOs9d 10 and ackrioWlect;ed by Ltlndwln wrlUi'1g. Tues. To the best or Borrowtr'l knowl8clge, all tax returns and reports. 01 Borrower that art or wltre lJIqLired to be tiled, have belK1l11ed, and al taxea, 88H8:ImenlB alid olher govammenll'll Oharg8fl have belIn P8ld In rug, ~t thOH preaenlly being or to be conl8slad by BorroW In good faith In the ordinary course 01 bustness and for which adequate I1lserves have been provided. Uen PrlOfIIy. UntIl!! olherwlse prevlOW!ly dlsclosad 10 l..ander in wriIIng. BorroWer has l'Iot enle18d Into or granted any Security Agreemenla, or permllled !he IIIlng or attacl1menl 01 a"" S&eurlly Interests on or affecllng anv of Ih, CoI1el8l'1l1 dlteclly or Indlrectty securing repayMtnt 01 BorrOW8f's Loan and Note, that would be prior or ItIst may In eny way be superior 10 Lender's Securlly Inl8t'asls and rights In and 10 such CoIlaleral. Binding Effect. this Agreement, the ~ot., all Security Agreements directly or indlrecUy securing repayment of Borrower's Loan and Nole and all 01 Ih. Related Oocumanla are 1HndlnliJ upon Bonower as wall as upon Sorrower's successors. r&PI'esenlaliVe& afld uslgne, and are legally enforceabl. In aocordance with thew respsctlVl terms. Cammerclll Purposee. Borrowerlnlends to use Ihe !..oan proceed& &0181)' for bU81ness or commerc\al rele1ed I2Urposes. Employee Benellt Plans. Each l:ImplOyee benefil pll!ln ,~ to w"k:h Borrower may hall8 any ",,~Ulty compU~ In au, malarial rl&pBCta wllh aU eppllcabfe requirements of law and regulatJons,-lll'ld (I) no FlepnbIB Even! nor Prahlbl~,'Tra,~_n (as d8tined In ERISA) _has ~1.IT8d with respClCt to any sUClh plan. (II) Borrower has nol wtthdrawn Irom tiny such plan or InlUiled iltPs, to do so, (Ill) no ,qps have been taken 10 lermlnlle any such plln. and (Iv) there are no unfundad IlablllDes other thin those prevlou8l)' dbcIOHCI to Umd8r In wrIl1ng. location of Borrofttta omC..... RecOrdS, BOITOwer's place of bus/niIs. or Borrower's Chief IXICUUVS offici, If Borrower has mort'tltan OIl. place or bUllness,. IOcaled al ~-DUrtlam Road, HlllTl5burg. PA 1711(l Ul1l8ss Borrower hu cf8sfgna1eo'-,othei'wf5e in wrilInliJ thfs localion is al50 the ob Of offices whn Botrower keeps '- ,records, concerning the CoIIal6ra1. Information. A11lnfotmallon hlretofara or_contemp,Ol'an80\I$Iy he'~ fli'nl&~ by Borrower 10 Lender fot tria, purpOSIS or or In connection w11h Ihls AsreOlnent or any nnsaouan conlemp!eted htreby Is, end-lIIlntor_~Uon twee.fter furnished ~y or on be~ 01 B_orroWel'_ to L8n:det will be. tru.and accurat.ln evtry materiaj-respect on the date as 01 WhlCllluch InformallOn Is dated or'ce,rttlf8d; and none of such inforlnaUon Is or wDI b. IrlComplele by omitting 10 slate any mlterlaUaat n9C98sary to make sUGh lnlonnation not mJaleadlng. Survival 01, Repl'lllenliatlona a.M Warren"" Borrower understands and agrees Ihat Lender. wlthcullndependenllnVltllJmlUon, Is, relying upon the above tepresenlatians and warranttea In extending Loan ArM,nc:tlS to 'Borrower. BotrCl'iVer furlhtr_..-, that the fotegOlng ropresontatlo", and warranties a!:W1 be conUnlllnlrln nalure and ihall rameln In f,u111orc1il and efflMlt unOl such- urn. III B01l'ower't Indebledness shill be paid In full, or untn IhlsAgreement,ha11 be lermlnalad In the manner provided above, whlche\ler Is tho Iat 10 occur. AFFIRMATIVE COVENANTS. Borrower covenants and 1lQJ1l81 with LInder that, while thIS Agreement Is In 8Ileot, Borrower will: LItlgauon. Promplly Inform Lender In wrltlng of (a) all rrtabrriallldverse chengas In Borrower's l\nJnCI8l condlUon. and (bl aI 8lCiBflng and an Uvealened IlIlgatIon, Claims, InvesUgaltans, a,dmlnlslrallve proceBdl':'QS or lIm11.,- dons aff8cllno Borrower or any Guarantor Which cclJld materiallY affect the IInanclal cOndlDon of Borrower or the financlal condition or any Guarantor. Financial ~cord.. Maintain lis books and recCl'ds In accordance wllll generally acceptrid accounting principles, Ippfied on a consistent basts, and t:lennlt linder to examln. and 8\1dlt BorroWBr's books and records at aU f'8BlIonabI8 Umes. FlnendI_1 Stetemenl8. Fumlsh Lander wllll, IS soon IS available, but In, no 8Vltut later lhan ninety (90) ,dava atter the end of each liscal year, Bot'fower'Sl balance $h.l and Inco,.. slalement for l~ year ended, revtawed by . certified pUb110 ACCDu,ntenl sallafacfof)' to Lander. AD llnanalal repcrls 'equlred to be provli:led \Indar this Agreement shall be preparOd In BccCl'dence wtIh g8n&t8l1y ecceptBd ,accour'lllng prlnClplN, lIPP~ on a consistent baa1&, and certilied by- Borrow.. as betrig true and correct. Addlllopallnlornudlon. Furnish suah addlllonallnformatlon and atelements, Isis 01 assaIG anclllabllllfes. aglngl of recelvl;bles and payabln, Invenlory ach8dules, budgets. 100000000ts, tax relurns, and olh.r reports with respecllo BorTOWfll"s flnanclal condlUon and bustnasa operaliona as Lender may request from Ume to time. Insurance. Malntatn fire and ok risk Insurance. public I1abIUIy Insurance, and such olhet Insurance as lender may reqUire wtlh r..p~1 10 Borrower'S properties end operaUOrtS, In form. amoun., coverages and with II'IIURlnoe compankls reuona~ IIlOC8plabls to Lender. BGn'OWer, upon request of Lender, will deliver to Lender from lime to lime the policies or cerlifIcates oflnsurenoe In-form ..~_lot.entkw,lncludlng sWaUons that OOY8f8gas wil net be cancelled or dlmlnlshad without alleaslltlJrty (30) days' JXiO!" wrllttn _"ob to_ Lender. - Eaoh Infiurance !)OUcy alsO sl1alllnclude an endorsement provldlng that coverag81l"1lavor Of Lendar wll not be Impaired in any way by any sGt. oml$$I_Gn or defaull of Borrower 01' any other person. In conneollon wilh &II poUcles cOVGnl'lQ use!s-ln which LIInder holds or is 0fI8t<<I . security IntenMt for ltHr Loans, Borrower wi" pro~ Lander with sUCh 101I payable or othet endorternents -as Lender may require. InlUrEC8 RIIpOfIa. Furnish let Lender, upon request 01 lena., AIf'-CWII on -.:lh "'ng Insurance poDcv sho!JIng such InIornvaUOrt ulander may.....n8bIy ........lncludmg wI1hout H_ tho follOWIng: (allt1a _ .1 the InIUlII; (b) the "aka 1_: (cllhe amoUl!lofll\B policy; (d) the prop8rt\lS-lnsUf8di (e) tI\e lt1en eu:rrent property _values on the buts' or WhICh-Insurance hIis been obta,In...., and-1J1a ~ of d"etermlnlng Ihose Y8lu_8li; ,nd (f) IhlpplreUon date of the JXlIJcy. In addlUon, upon request of lender (hOWevGc not mOf8,on." thin annually), Borrower w1~ have an Independsnl arJP!'9l11pr aallrilactDrY 10 Lellder dlJlermlne, II applcable, ~ aotuaI cuh value or f9p1a!:emenl cosI of any Colla\8nll. Thecoaloflur:lt8fJ~" 'paJdby....._. \<~ '..:; . ~.....~~-, Losn NO ilUODtlO \""'''P'IV''UI OIINN' Agrtemems. Comply with lIlIl6rrrM: and condlliDas 01 all olher agrENml6l1fl, whaIhet now or herearter emtlng. betwwn SOITOWt!ir alTd any other Ptll'lV and nollfV Lender Immedlalely In Wl1l1ng of any dellullln connection With any oltler .uc::h a;reements. LoaD Pnn:eldl. Uss aD Loan proc:fJtlas SOlely ICt BDrrow,,', blJslness aparalloM. UIIIess spscfflcally QOflHf'lWd to tlUJ CO(ltrfilry by Lender In wrlUng. flUS, ChNgu end LIens. Pay 8Ild dJscharge when due all of Its IndeblPdneu and oblloallonl. Includlnu w11hoVt IJmIIaRotr aU _msnis, taxes, governmental charges, le\4u and liens, '01 &IIWV kInd and nature, Im~e"d upon BOfTOWe!' 'Or Its ptOpe,rll8t, lnCame, or proflts, prior to tile dale on wtich penftllles woUld aneoh, and alllawfuLclalms that, II unpald. might beceme a len, bl' ch;.rge _u~ any '01 B~ ~l'ClparUes. income. 'Or pruffls. ProvIded however, Sotrower wtII not be required to pay and dfschar;e any'such 88S..ment._laic. charge. ftivyi ftI!1'~ cfalm sa long IlJ ea) the legality of the tame shall be contested In goad fatth by approprlale proceedlngs. and (b) 'Bo"cnver ,stlaIl haVe BBIab~ en lis baokS adequate '888M1S with respsct ta such contested USISIlTI8f1l, tax, c~. levy, I1an,. 'Or Claim In accordl/'ICI with ~y aOc9pJJd accaurdlnll praclleea. Borrower. opon demand of L8l\der, Will furnish to Lender ",dance of payment Of the ~nts. taxeS. chttJJn. l8vIos. liens and claims and wUI aulhorize lhe a~proprlBIe governmental alftciaJ to dell\rer 1'0 lender It any lime a written statement Of any ,,,'&ssmards, !axes. chatg:at. IevlBs. llel'li and dakns against 8orrower's prfJP8ffits, Income, or proflls. PerformlllCCt. P9rforrn and comply wUn aU lerms, oonc9Uonl, and provlslol1lii set 1clrth In this AgreetnBnl Bnd In the Relaled Documents In a ~melY marmer, and promplfy nollIy Lender II Borrower Ieams 01 tMe occurrence 01 any evenl which ccmsIJIules an Event of o.taun undtr this Agfftmsnl 'Or under any of lhe Related 1loC1Iments. OptIaJkmS, MamtaJn 8X811ulIv9 and nl8naQamenl p8fBOnnel with subslanHsJ/y the same q~ and axperlence 85 the ptfttnt executIwP anct management Penlonneli provlde wtltltn nollce to Lender of any change In execuUve, anct, manaoem, enll:Jersennat canduct. Its bUSI,n88S allalr8 In a reasonable and prudent mllnner and In compUal1Ct wah all tq)pl1cab18 federal. stale and murilcll:JaJ /aWl, ordinances. ruIe5 aJid regulatlans I\lIspedJng Its properJtes. chsrtel'l, busfnesses and aperallons, '~lIdIng without imifllflon, cotnplllilnce wHh fhe ~fcans WI1h 0islibIIIffes Act and w11h all minimum funding etandards and other requirements of ERISA aM oIher laws 1I>>I1cJb1' to,Borrower's employee benelit plans. 1n",",1on. Permlt empJcyees Of agents of Lender at an)' I'U5OfIabJe time to Inspect any and aN ~ for the-loan or loane and Sanower's alt'l8r propatlles and to examlM or tuelll Borrower's books, accounts. and l'IOOtdland 10 _e coplesi and mem_crandlD: of Bc!~r't bOOkS. aocoun1$, lJld records. I' BorfOwel' now or el eny lime hereall&r-rnlllntelne any teeon;ls Qndu~ Wllhoul Uti'IIlaUon C_OfnP.uI8_r ,g9i'i8ri_ted t8cords and Compufer software plC)gl'Bllll for fhe generaflon of such records) In ff1e p~n of a fhIrd party. Barrower. Upon-requ:est of-JJmd8r. shs,p notify such party 10 permlll.encler rr&e access to SUCh recorda al aD reasonable 11m" IrId to ptO'vkIe Lender With ooptes of any rilccirds tI may request. all at Bo<<owBl"s expense. Compliance cetllbte. U....ss walV4d tn wrflfng by I.erlder, I)rovlde L..endsr at IeasI annually and at tM 11m. of each dlSbul'S8tylent of Loan pJOO8lilds WIth a 0WIIIIcMe executed by 8cr'roW8r's ohIef IInanclal olllcar, or other ofIlOlr, or peI'SO'n accep,libIi, to LertdGr:. oei1J~ ltiall~ repnlfl8nlallofl$ end werranties $ellarlh In 1hI,. Agreement are true and carrect as allhe dat& '01 the OIrt1l1Qa1e aNd furlher certifying 1h1.!, as of tne dale.Of lhe certlllcate, na Event 01 Defaull exists um2er this Agreement. Envlronmlnlal COm~ .nd Reports. Sarrower shafr comply fn ~ respacls with aU elwfronmanlaf prolecllon 19deral, stale and Ioc:al. laws. $1&tutts, regulallO", and ordinances; not C8use or permtllo exist. as a result '01 an lntenUenal or unlnl8n1lo,nal aclion, or OmiUlOl1 on: It&.parf or on the part gf any third plll'ly, on properl)' owned and/ar occupied bV BorroWer,_any envl_ronm8nJIJ"aCIJ\fiIy wlJtJr8 ~-may, rtJvft 10 lhe environment, unless such envIronmenlal aclMty Is pursuanl Ia end In oom~nance WIIt1lhe CQr,d~ 'of.. P~UiSU8d"by_the:~propi1e..lederal. slate Or local governmantal aUlhOl'1It9s; shall furnish to Lender promplly and In anv..,.nt wtll:1l": 1tIIi'ly (30) _~ .- reoe1pI,l~ ..-:CWV 01 any noUce, stcmmGl1lii. "en, dtaffon, directive. /tIter or other cornmunloltlon from liMY rJOVfmmsnlal tgInay- or lriSIrumtfttilll'Y caflOiiTdti'9:'I'ny Intsriflonat or unlnlanUonal aCllion or 'Oml~an on PolTower's part fn connection wtIh any .nvlranmenlal activity whether or not thef9 Is dlamag. 10 lhe .nvironment anel/or ather nawral resaurces. AddltlonlJ AuurancH. Make, execute end deliver 10 Lender suoh promissory notes. mortgages, deedl '01 trust, security agreements. flntoolng staternents,lnstnlm,enls"docurnenls and other agreamenls as Lender or Its allerneys may reaBOnabty l"9quest 10 evidence ai'Id secure the lOll", and (0 pedecf all Secur{(y fnleresls. RECOV~Y OF ADDlnONAL COSTS. If Ihe ImpO!illlon of or any change In any law, rule, regulatian or lIuldellne, or the InterprelaUon or application 01 any thereQf by any caurt 'Or admfnlstraffvf or g-awrnmsrdaf aultlo,llV (including aqy~.t or pdllcy not t1a~ng the lon;e_oflaw) Shall' lm~, modl1Y Of 'make appncable any _~ (lXCIpt U.s. federal, slale or local Incame _01 frenchlse ~_Itn~C1sad ~ _l.andlr~ reHN8 r8qU1rel'Mf'l~~ ~,-.dflqWlCY requlr.l'II8n1s ,Of other 'ObQgaUons whictl woulcl (a)-lncreas8lhe tost IQ Lender lOt ~nQl~_-onn!llntilriJng'thG:-~1t fiQlltieI.tQ Whk:td~_i(Agrti""nt 1'...... (b) rBducethlt llMOUnts payable lo Lender under '* ;,greemenlocr the ~ D~~1&,: 01 {c).:rtid~ Ihlt,rlle_ al"liIItlrn on LtI:~~ capital as a consequence of 1.tndefa: obIlgaflons with respect lei 1he,c:redIUacllltf8s'fo Which, Ihj& ~reeme", felli-" than B~.ag_' to,,,,"y.L.endtr such additional amounts as ~ ~pensa1e Lefl!* Ih~. wllhln five (6) ~ .1lW Lender's w,I~'n' dei'i'IIrid_ tor such payment. whICti- _nd shall be aooompenled bV an ,eXpianaRon oIlUCh-lri'lposlllori'OI"chai'gllnd a cBlculltlon, In reasonable c:Ietilt <;II the addll\onal amounlS payabkl by Borrower. wI'Iloh explanall:on and ca/CUIliUans shall be concItJslveln the abienPl 01 manliest &trOt. NEGATIVE COVENANTS. BalTOWlr covenants and agrees WIth ltnder Ihet while this Agreemenl i& In elleet, SOITOW8I' Shall nat, wIthout the priar wrlllen consent of Lender: Indebtedneu and Ulna. (a) Exc&pl for l~de debt InCtJrred In thl normal Cl)Urtle 01 business end lndeb~rtees ta, Len.. cOflllmpJaled'by Ihll AQrJllIl!ment, c~alt, Incur or allume Indeblednsss for borrowed money. InclUding capital Ieasee. (b) exoapl .. aDiwted as a~ Pemllited lien, .eI, lransfer. m:orfgI!I:ge, ~n, pledgll, /ease, grant a sectuily IITJetusf lIT, 'Or encumber any 01 Borrowsr'r aaetI, or (c) self. rac:outs8 any of Bon'owar's aoeounls, excepl Ia Lender. COnUnutfy of Operdolts. (el ERfla{lfl In IIny business .tc:tMtle, subatanWy dlIferelTllhal1lhoseln wHeh ~ Is presenlfy 6ngaged. <If' (b) cease opendlons.llquldate, merge, transfer, ecqulre or consolldale w!Itl any olntr entllV. change ownership. dissolve or transfer or sell Collateral oul 01 the ordlnaryCl:lUt'SI '01 bUSlnesa. Loan', AcquJlIIlonaand GuaranU... (8) loan, Invesll" or advanoe Money or assets. ~) purcl1lBe. create Of acquire any Interest In a,,'1 olher anterprise or enUty. or (0) Incur any 'Obllgallon ll6- surety or QUBnlnlar olhet than tn the ordinary COUI1EI 'Of busIness. CESSATION OF ADVANCES, 11 Lender hu made any CIOmmllmentlo ma!le any Loan 10 Bon'oWel'. whSther under this Aal1J8ll18:nl or under' any other Blilre&msnt, Lender shan have na 'Obligation te make Loan AdVances 'Or to d1iburse Loan Droc88ds If: ,(aJ B.orrower or any Suaral'llOt It I,,'_ull undftr me terms of this Agretrnenf or any ot the Rerafed oocumenll or cnrofitef ~ UIat,8_0lT0Wer l'1! 8" G'WiBntorhllS wit!'-~ (I)),'BorroWtit 'Or. any Guaranlar. dies, becam.es tncompel8f\l or Insolvent, Illes . p"l~ In bankrup~y o~ Sk'nlIet P1~,~ or It adjl.l~_~ a_'_~~upl: (e) Ihere ocoun; a mate_rtaI adverse chang. In Borrower" financial condlUon. In ~'Ilna~,condltion 'Of a~ ~. or In the v81ue Of any CoIIiij~ securl~ any Loan; (eI) any Guaranlor see~s, claims or otheJ'W1S8 attempls to Umlt. modify, or revQk' SUCh G,~-rai1lol''s guaranty or the !.pill Of any Olhar Iotn with lender; or (e) lJmdet In good Iallh deems ilself lnucure. even Il10ugh no Event of Delawl shall hive oocurred. ANNUAL PAYOUT PERIOD. BOI'I'OW8r shall be required 1'0 reduce lhe oufalendfng princlpal btJanae under IhIlI Un. at Credit to zero lor a thirty (30) consecutive day puriod during eact, year 01 the L.lne of Credll. COMMITMENT L.E1i'ER CdMPLIAHCE. This loan Is conltng&nI upon 8()lTower's comp6ef1Ol with lit 01 the terms atld cantfltlof1$ contained In the commitment 1811...-lssUacI by Lender to Bon'ower an or aboul . UPon bttaoh 01 any term 01' con'cllIon conlalned tb8rtIn,lender st1811 ha.... the r1ghllo declare thI& loan In defaUlt and d8mand payment In fU\\ of the I'r1nolpal blllanae remalttlng unpeld, lageDwr With IlIlnlerest which shall MvellCCured I""reon. POST CLOSING COMPLIANCE. BCfrower aureH to execute, ro-exacule. cause any Guaranlor(s) or ottI8I' third party(lest Involved I" lhe lOIn transacUon 10 execute andler re-QXeeUleand 10 dell\fer 10 Lender or Its legal counsel. U may be cfumed appfOlJrlate.any dQOumai'rt, Ollmtrumlnt SIgned In connection wIIh the l.Oan wnIctl was Incorrectly drafted andlor slQnBlt. n _,I a"any ~errt or InikUment w_htO"'S~Wd have been IJgnsd" 01 prtoT 10 ~ c10sJnQ of the Loan. but which was not 5,'0 sIg,ntd and delvwed. BClI'TOW:er QrHS to'COI'I'IPlywfth any WrlIt8tH'b_t b)' Lender wfIh1n ten (10) days aRer recslpt by Borrowerot sl,lCh request, Fallur. byBO/TOW8l' Ia so cornpIYsIlaII,,,lheoptlon of LendIIr, upan I!Ollce 1'0 Borrow". conelltule an event of default under Ihe Loan. Pl.B.1CITY. TheJ~ender. at lis opllon, may BnrtClunce and pubUcIze Itle source of Ihe lInanc1n~ 9I'BI'lled hereunder, by means and mtdla I18Iec1ed by lhe lender'. The Lender, at III opllon, may deliver 10 any proplrly(les) pledged U $&Curtly tor, the, repavment of 'helcan. BIg.,. roc c:a;pJay Indicating ,..,........., IS pro>fdlno'" .no...... lor'" p-. H IUQh 11;0" _ded by If10 Lsndsr, _ _Io..use 'ho.... 101>0......10<1 In ~ch place bysultablyalfbdng the slgn to a slrUbltn on ,Ita slIe, end to malnllln lhedlsplay o'Ieuch ilgQ far1he durel\dTt of the_Loan. LE'ASES. AlIeue5 pwsuant 10 whJth Bonower 5haIIlsaso ID third parlIea pCll'lhw of any PfOP8/I)'(Ja) pledged as securil)' for "'" rlp8Y1Um of Ibis loan ,he.U be aubJact to prfor wrllten cpproval bV the Lend.. (I) as 10 form II\d content and (8).. lalhe IdInIIIy and lInenr:lal QOndlUon of th.1eUes. RJ>APPRAISALS. In ItI8 event the' durll'l9 the Ierm ollhtS IDln or any extension thlreof, Lender shaI_d88m It ~ 10 oblaln .- current appraisal al any prcp81ty(leS) pcedged IS *urltv lor the repaymenl of this loan, Lender shaU engage the servlclS '01 an apprll....ICCl8I:JIabI.1Q II and Bon'ow8r agrees to pay th,e IN charged by such appraiSer In providing lhe Gurrent IIlpratsal. FEDERAL TAX IDENTIFICATION NUMBER. Borrower5hB11 plOvlr:te Lender with Borrowet's Fedefal employer's ldenllllcaUan number_ RIGKT OF SI!TOFF. BorrOW9l' granlllo Lender a conb'RluaI lecurlIy lnl8rl8t In, and heraby assigns. COtMtYlI, ~ ~ and tl'lllnsler1 to "';F"~ '. ~, ~~~ '- ~'-'L~~ ...........~ -" ~_, 0- '". ,-.........--.., Le~der all Borrower's righl. llUe and lnIerest In and 11), ~orrower's accounts wllh Lender (whether ChKldng.:~v1ngS. or some olher account). Includrng wiI~out IImltallon all aceoUMs "'ld jointly wilt! someone else and all eOCOunts BOl'J'ow. may open In the fulure,'excludln9 hOWaV8i' anlRA and KfJogh accounlt. and slIlrust accounts for which the grant of a SGCurtly Intwest would be prohlbllsd by taw. BalTOWII' authorizes Lender, 10 (he ex\ent perrnll1ed by applicable law, II) cnarfJ8 or saloff aU sums owlng on lI1e h,debledness against any and al such aooounta. EVENTS OF DEFAULT. Each of lne foHoWlng shall constitute an Event of Delaultundar this Agreement: Dtfdll on Indebf<<lneu. FaHure of 8Dftowar fa make any pa~ when dUe on Jhe LCIIIs. Other Del'1lUII&. FaHU1'8 of Borrower or any Grunlor 10 clOmply WIth or 10 perform wnen due any olhll' term. obllgllflon, C0V8nant Of condition conlalned In thl8 Agreement or In any of the Relaled Documents. or taluRI of Borrower to compty wnh or to perform any other term. obligation. covenant or oondlllon conlalned In any other agreement bfJtWeBn lender and Borrowlf'. Defll~U In Fevor 01 Th~ Parlin. Should Borrower or any Grantor detaull under any IglO. extension of credfl. securIty-agreemanl, purchase 01' sales aQllldment. or Gny olher agreemenl, In lavor of any other enldllor' or person that may matertally atfBOI ally of Borrower's propif1y or Borrower's Of any Granlor's abmty to repay lhe Loans or perform Ihelr respective obllgallons under this Agreement ar any Of Ihe Related Documents. FII.. Stllemlnt., Any warral'lly, represenlation or statement made or fUrnlllhed to Lender by 01 on behalf of Borrower or any Grantor under Il1Is Agre6mtl1nl or the Related Documenls . false or misleading In Bny malerIBI respeel at lha lime rrNllde or furnished, or becomes latH or rmsleadlng at any Ume thefBaller. Delecll'le CoII.t.,eJIZIUOn. Thlt Agreement or any ollhe Related Documents ceases to be In tull fofae and effect (lnctudlng failure of any Security Ag'reemenl to crealt a Valid and perfecled SecurIty Im.reat) It any time and far any reuon. Dellh or Insolvency. The death of BOl'J'ower or the dissolution or termination Of BOl'J'ower's exIIlence as a gOing ,bUSIness, the In$OIvency of Borrower, the appOlntmeril of a receiver lor any part 01 Borrower's property, any assIOnmsnt lor I", tllmem 01 cQdllOr1i, any type or Cl'9dllor workout. or the commer\C8ment of any proceecJlng under any bankruptcy or Insolvency Ia.ws by or SOSInat Botrower. CredUor or Forfttturo Proeetdlnga. Commencement of fon!lctosure or 1orfeIt1lr8 proceedings, wh8lher -by jud!clll prOCDB_dIn_liI, selt-helP, repossenlon Of any Clther melhocl, by_anY ereclllor of Borrower, any creditor of any Grantor 89a1nal a!"Y eoIJil8ral-S8CurftlO 1!'lt'Ind@lI~, or by any vovemmenlaLagency. ThIs Indu'" II. garnishment, altachmtnt, or levy on or ,of an., Clf BortOWGr't, dIp_ accounta:Wfth,ter:i~. HQWever. this Evenl of Default shall nol ap_pfy IIIh8te Is a gOQd faith dllJ)u1e by Borrower or I3i'anlor, as ttle,CU4Un&Y b'II," 10_1I'l8 vandlty'or,:~Qna~ of the claim which ls the basfI 01 the credllo~,OI' folfelfure p~lng, aitcf-If Sonower or GrantorglYja LanderWrfflItl nob of'(f(e Cre01Ior or lorlellure ptooeedlng and furnish. reetl'V8S or It s~ bond lOr Ih8 crecDtor or forfellure proel8d1ng aatlIlecIOry to Lendit. Eventa Ane~nlil GU8Rlnlor. Any 01 the J)NlCedlng evenls occurs with rGfIPec, 10 any Guarantor ,01 any oHhe IMilbtednjss Of an., Guarantor dies or beccm8$lrloomF)etent. at nIVokes or dlaputes-ltl8 vaUdUy 01, of IfAbllily under. any Guaranly of !he, Indebtedness. Lender, at iii optli)n'. may, bul S/OIIInclbe..qu/nldlo.pormlllheGlIllUlnfot...f8f8IO_lmClmrllltonaJlylho_IIo",llIrIi1gu_lhog<iat....,... __ 10 Lender, ancl,ln doing aD, cure the Eve", 01 Oetault. Adverse Change. A malerleJ adverse change oc:curs In Borrower's flnanclal conclilion, or lender bBlieves lhe prOspect of payment or pertormance of"" IndebtO-dnQ8Is Impalrld. Vetr 200D Compllence Fellure. Fafture 10 meel the deadlines requl~8d In Ih, Year 2000 Compll8.nce Agreemant to be Yeer 2000 Compllanl or a reasonable Ukellhogd thai BorroW8l' cannol be Year 200D CompUanl on or before Oucember 31, um. Ineecu"tV. Lender'.ll\ good faith, deems ltseIf InMCUte. mpr 10 Cure. tt any dt1aUll, 0Ih8r lhan a De1aUII on Illdebledn8ss.- IS curable and If DomJW8I' ex Grantor, -ti Jn8 caso mlv-be. hAs no! been given. nol1ce .1. "m'... cl9laull within 1110 p_dlngtwarve (12) mon,lhs, It mlvba 'Urad (Ind n.Event 01 Dalallltwm nave!lCOtlfl!l4) ItDorrowar or Grantor. 81 '"' case may be. after I'8CtlvlnQ wrlllen neb'from ~,(Kl.. dtlf1l&O(:ll"9-cure-,of.,fl~, defaL!l.t; (eJ CURlS, ttiij",~'~n-bm (101 daV$;'or (b) It thlll 'CUre requires more than len (10) Clays. Immscllalely InltlaISl.tepa'whlch Lei" d,8fW.'S IA l.8t\d8i"e_ sGle,~on 10 be M1l11c1erll to CUl'l the dBlault IJtd 'hers_fter continues and c;omp~ ell reasoneble and neoeuary steps flulftclenllo prodUCt eDl'llPlit'ICt as soon ,,-p-, ' eFFECT OF AN EVENT OF gEFAlLT. If any Event of oer.ull shal occur, except white Olhtl'wlle pl"ovlded In IhIs ~I 01', the Relaled OOcumenls, all commltmenll and cbllgaltons of Lender under Ihls Agr'eIlmenl or lhe ~ted_ D~um.n" _or ~ ClthW, ~~II",,,,d1.leIy WIll Iarmrnale (inclUding -anv cbllgaUon to 'make Loan Mvanoss 01' dlstlurbemenls), and. ar Len~ optI~,-aQ Indebl!dn._, I~, vdP:~-dut and payabkt, all without ~Ikla 01 any ~Ind to BOrrower, except I~t In the cne of an B~ni ,C1f'OafMifI Clf 0i8:.~.. (.lCn~j.f,m :Ift,f "n&.~ sUbsecllon above, sucl'l ._~I818llbn shall be auiomallC and not opllOl'llll. In adcMIc;m, Len.. ,shilt,haw'a' 'ttwn_lQl'iIi:'affll__r8~J?~ In Iha I'Ielaled'Documenls or avillable at _w,ln equity. or otherwlse. Except as may be JRhlbittd-by.,!lPpl~ ~.-Iu of Lend~':rlOhfS,.ndteMI8s ~id be _cumuJaUve and m,av be exe.-ollJed singularlY or concurrBnUy. Election by 4-nder 10 purswt any ,Almtidy shall not ~ pnWt Of any other remedy. and an alecltall to make expendllures cr to take acllon 10 perform an obligation of Borrower or of any Grantor shal not all8cl Lendtr's right 10 d9cIare II defautl and Ie exercise lis righls and remBdlas. MlSCELLANEOUS PROVISIONS. The following mI&oiIIaneous IJrovl$lonS are a part of th1s Agreemenl: Amerufmen1e. Thrs ~reement. together with any Related Oocuments, COtlItIlulu the e",11'8 undll1tanOlng and agreement 01 the parties as 10 Ihe matters slit tanh In this Agrwmant. No aUeraUon ClI or amendmenl to Ihl, Agl'89rnenl shall be elT8C1W8 unless gfwln In Wl'ftIng and signed b., lhe party or parties aClugh! to be charged or bound by Ihe alle;aDon or amendment. Applicable_law. TtlII AQreemenl h.. been delIVered to Lender an~ ICeIPIeCf bY Lender I_n Ihe CommOn,WuJJh of,Pe~I"enIL II ",_.e.1' e lawsuit. BDmM~ ag(Hl-upon Lender's request to GUbmll, to the: JU'Ja4!f::t1on,_oHhe ~urll:oI ~1dI COu"""the _~"h of Penneylvinl.. Lernler'" ~.r hereby wafve 1fte right-to *,nY:lury-frliltf In "',~n,-p~IIiI, or ~ broUGht fir either Le\ndl' or BoIrower IgIlnet the olher. Thle AgrMmenlll'llll be governed bY IlIld co,ISlnled In JICCOI'(IanCe wlffi the lIWa or 'he commonwlailh 0' PennsylVUlIa. Caplton Headlnga. Capton headings In this Agreemenl are for convenrence purposes only and are nol IG be used II) Interpret or define I'" provisions ollhls Agreemenl. , Consent to Loan PartlclpaUoft. BCItfOW8r sgr881 and eonl8f'lls 10 lander's sal8 Of' lransiw. whel,her now or lalet, of one or more parllclpation Inlereals In Ihe Loans to one or more pUrchasers. wt.1her related or unreJaled to ....,der. Lendln' may p_raYldej,wllhout any lI_mtlalIon whl~. 10 any one or more purchasers. or potenltal purct\asetS, any Informallon, or kn0Wl8d~. L.ender-may tlave abolll Borrower ,or- il!:iput-any 01"'- matter relaUng to Iheloan, and Borrower hereby wal\IVS any I'fghts to pirfyllCY if-may ~ve w1Ih respect to 81fC}h msff8i1. _ BorroWer _.d~ wAIIWS any and all nello. 01 s.ale ot particlpaUon Inl",ls. Q-we' as all notices ot,any repurchase '01 s'~ p,rttclp_~ lnlli~ts. B~,~ aglV8S lhat the PlIrChasel'I of any such partlcfpaUon Intere&ls wUl be consldarecl as the ibsolUle ~""Of lOCh, Int8riists In lhe L.oa:nI'.nd lNiil,hli.w 8l1lhe righli granted under lha p._J1IcIpiatlon a;rurnent or aQreements liIovernlng th. sate ot suCh parUclP!l~O" !nlerests. BO/!O\'Vei" futtt\er waives all righll "f Dlfsel Of counJerd~ OJallI may hive fIDW 01 later B9aIntll.ender or 'Q~st_ af'Y P,Ul1l~ Clf suctt a,,I;)lutIcIplftan,_lntirIIl and unc;ondlHonally a;rees thai efther I.8ndttr or such purchaser may enl0l'Cl8QJrOWet't obl.l~llon"undir.lhe LOlln._I~ of the failure or tnsolvenoy of any holder 01 any _In\ereSt In the Loans. Borrower furlher RgI'8lm lhallne purchaSer or any such pafllclpaUon Inteililsts may enfOlC9lfl InlerQls !rrllSpectlve 01 any personal claims or defenses thel Borrower may have again*, Ltndlll'. Coate and EXp8Ne& Botro'wer ~Q8B 10 pay upon demand &II 01 Lan(fer'l expe0$8S, InoIud\ng without ImltIIUon attorl'l8'l" __, Incurred In conneeDon wllh thl preparation. exlHlullon, enro~ment, mQl'iIillc;_l1lon and coUeotion of thle ~mfInl Of In _~nactlon wIlh _~, ~n5, ma~ pursuanllo II1Is~menl Lender may paYSOlll8OnB &lseto help coltect 109 LoaJ\S and,to .nlarce_lhls~mant. and _lkti'rOWit wUl pay that amount. Thla 1nclUetea. subject 10 any_lImlla undet appUcablelaw. Wlnckl(s atlcrneys' fees and -Le,~-~ exPenses. w~htr or:11Ol u.-a Is a lawsuit. Including ellomsys' fees for bankruptcy proceedings ~ncludfng efforts to mpdlly or ~ any auklil'la,llC:it8y or-lnJunCtlon}.~appeals, al'ld any anllclpafed posi-Judgmenf coUeclion services. Borrower also will'pay any aowt CO$ts, In add/lion toaIl'oIlWsums ptQVlded by ,law. Notlces. All notien required 10 be given under thiS Agreement 1lha11 be given In writing, may be sent by teIefacaIrnDe (unItSI oth8i'wIso required by law). &n,d shall tie eIfeotlve when actually delivered Clt' when deposlled with a nalIonally-reopg~ ovemI9m~urter--,Q' d~, In lhe Unllad Slam. mall, Brsl elisa, postage prepakl. addrelHd 10 lIle party to whom the neliae Is IQ be ,sM!" al the '~dclrlsS.~own~. MY _party may chan;o Its address for nobs undllrtilia Agretrmlrtfby;Mnq formal wtfltell notICe 10 the ofh8r~"~_,lha,tlho,~_tI1ll'it noItCe" to change the prwty'a address. To the exIom permltlad by applioablelaw, If there Is mCll'8 than Q_...~aOlTO\Wl:f. natIl;i,.-tO any; Borrower wm constttula nol1cllllo all BOJTQW8f1;. For l\otIce purpl)l8S, Borrower wm keep lender Inrormad at an 11m.. of Barrown current BdctieS{ea). Sever_bUlly. If 11 cowt 0' oompetent jurlsdlclion IInde any provision of ttUs Agreeme", 10 bo IlW4Ilt;l or ul'l8l'lfo,roesbla as 10 any pBl'lOn or cln::urntCal\Clll, such- frtdlng shall not nmder that proWslan IrwalJd or umJrlrl3rC88ble u kI any ~ PffSDItI,OI drculNl!l:l1C8I. "feftilb1e. f/J)' such oH8I1dlng provIsion shaH be _lQd _Ie be modllled to be within the limits Of enIorctabItitv orvalldlly; hGWeVer, If Uti ,Offending ~on cannot be so modllilld, It shell be slrlcktn Ilnd all other ptOVlSlons or this Agreement In .. olher respects'shan remain valid and tnbceable. SUbslcd.lelII .... AffIIIetU Of BallOW To the eldenl the con'-xI of any PfO'o/ISIOns of INs ~ fYIIlkes It 8PPrejpr\&.te, including wilhoul Umllation Iny represenlaUort, wclTMty.. ..NMItIt, the- word "Borrower".. vaed h8nJ1n ahIl . Jde aD ~ and..... oI8ortDwtr, "~~" -- ."'" - i";j~~~,(,,, LOBn NO il.1,Q:IIW \VUllLlnUa'UI Notwithstanding Ihe fOregOing however, under no c::lrcumWanoes ,hall fhi$ Aijr..mllnt be O(In.lrUed ID raqulre Lender 10 make any Loan or olhlr Dnanclal accommodaton 10 any Sllb8ldlBry or affiliate of BOlTOWtt. SUcCUI!IOr8111td Aulgns. All CCV8nanls and agreemenl$ conlalned by 01' on behilf at Borrower shall bind Its IUCC8SSOtS aAd Ullgnl and shall Inllre IDtho benefll oflender,llssuccessors and assl;N;. BortCWer thai nol, ho\lt8V8J'. "IVI tne rlghl to assign lit rights under thIS .elTl8fll or .",_lharaln,_'..._W11Il81l_oILonda1, Survival, All warrantl.. representations, end covenanls made by Bon'ower In Ihls Agreement or In any certIfICate or ~8r Insll'um_1 delivered by BOl'fOwer to Lender under this AQreement shin be considered to have been relied upon by Lender and will sufVll$ the making of lhe loan and d&lfvefy fo lender offl'l. Relaled Oocumanls. regardfe&' of any flWeslf~I.UtIn made by !.ender or on lender't betlall. nme lsol the Euence. TIme II 01 It.. euenoe In the performanQl cf this ~menl. WaIVer. Lender stIaff nol be deemed to have wWwd' IIny rfgllts under lhfs AQreemenl un. 8ucfl walver 18 given In wrfUng and 8Igned by L,nder. No dela~ or omission on the part of LendBr In exercisIng any right shaH operete u a waiver of such right or any olhet rtght. A wlllWr by -lendlr 01 a provl$/on of IhlsAQraemenl shaD not prejudIce or COl1llllltJte a waiver of lender's right oU'l8rWla8ta ~ 8Irlct ClompSa~wIlh tnat PtO~ Of al1Y other proWslol1 Or thIs Agreement. Na prior W81wr oy Lender, nor any COUI88 of d$iIInll' bGIWftn LendBr and Bol"rower, QI' betwan Lender and any Grantor, shan ctInslllul8 a waiver of any of Lend8r's rights or 01 any obUgallDN1 of BoiTower or 01 any Granlor.. to any fUlIn transacUOl1&. Wheltl'llUl" the consent 01 Lender Is required under this Agreement, the granUng or such cQnHrlt by lender In any.nee shalf not consmute camtnlJlng consent In subsequent InstaI'tC8l Where sUCh COl1Mnt Is required. end In an c:85llS suah consent rl\lIy be oranl8d or wlltlhBld In the &Ole dtaoretfon of Lender. BORROWER ACKNOWLEDGES HAVING READ ALL THe PROVISIONS OF THIS BUSINESS LOAN AGREEMENT, AND BORROWER AGREES TO ITS TERMS. THIS AQREEMENT IS bATED AS OF JlI..Y 22,1"1. THIS AGREEMENT HAS BEEN SlGNeO AND EAlED BY THE' UNDeRSIGNED. BORROWER: ,~""e(~~~Ii&'" x x WI'.... ~-~ LA$EFI PAO. RIlI.lJ.U,PII." T.M, 011., Vet. l.26(o)I",OFI Pro$tNIc... Inc, Ad rfghl.rnlll'V,I1.IPA-Ct0070AP.LNctO.1)VLJ .'=""~."> , , .N,~ ~~ 10.1,"- Exhibit H ~, '-'- .--, ~" -.=-~-. ~~ -0 "' -1-: -J""-'=ot<, EXHIBIT "H" Commerce Bank Date of Payment Interest to Commerce Bank Payment 1-5-99 $2077.31 2-4-99 1988.16 3-5-99 2040.28 4-2-99 1842,84 5-5-99 2040.29 6-1-99 1974.47 7-6-99 2040.29 8-5-99 2010.84 9-3-99 2093.98 10-5-99 2144.21 11-4-99 2078.39 12-3-99 2147.67 2-3-00 2201.30 3-2-00 2234.87 4-5-00 2109.57 5-4-00 2255.05 6-5-00 2182.31 7-6-00 2383.23 8-4-00, 2286.23 9-5-00 2362.44 10-5-00 2362.43 11-4-00 2286.23 12-5-00 2362.44 12-30-00 2286.23 2-1-00 2362.44 3-3-01 2158.00 - 1 - 1!11"- " ,. '" ""~ ,- -'~tiJ., Date of Payment Interest to Commerce Bank Payment 4-2-01 1939.83 5-3-01 2147.68 5-31-01 1972.63 6-30-01 1912.12 8-14-01 2381. 49 9-5-01 1825.52 10-3-01 838.28 11-6-01 772.47 - 2- "'" . 'o.>,~ , ~ '_0 " 0' l' ---, . CERTIFICATE OF SERVICE The undersigned hereby certifies that on this date a true and correct copy of the foregoing document was served by first class mail, postage prepaid, on the following: ~ James J. Touloumes, Jr. 328 West Old York Road Mount Holly Springs, PA 17065 Froso J. Tou/oumes 328 West Old York Road Mount Holly Sprin9s, PA 17065 Constantine G. J. Tou/oumes "Kosta" G. J. Touloumes 3 W. Pine Street Mount Holly Springs, PA 17065 .~ JFK-T Group, Inc. c/o Kosta' 5 Restaurant 451 N, 21 st Street Camp Hill, PA 17011 Robert L. Knupp, Esquire KNUPP, KODAK & IMBLUM, P,C. 407 North Front Street Harrisburg, PA 17101 ~__ ~ ~L " ebra P. Fourlas Dated: November Ii, 2001 ~~- - ~---....,. .,- ,-,i-,,-o mLl- . ... CERTIFICATE OF SERVICE The undersigned hereby certifies that on this date a true and correct copy of ,the foregoing document was served by first class mail, postage prepaid, on the following: James J. Touloumes, Jr. 328 West Old York Road Mount Holly Springs, PA 17065 Froso I. Touloumes 328 West Old York Road Mount Holly Springs, PA 17065 Constantine G. J. Touloumes "Kosta" G. J. Touloumes 3 W. Pine Street Mount Holly Springs, PA 17065 JFK-T Group, Inc. c/o Kosta's Restaurant 451 N. 21st Street Camp Hill, PA 17011 Robert L. Knupp, Esquire KNUPP, KODAK & IMBLUM, P.C. 407 North Front Street Harrisburg, PA 17101 ~-- /? ~ / ebra P. Fourlas Dated: November 2' ,2001 ." -- ~ ,,~~~. ~ ,,<. " ' ::, :..,,-,"-~, ~~\., ~ t: e ~ e ~ N ~ el .. a:s: w2 o:i: \;29- :l!:; !:l:::. a.. ~~ :;t1 ..:l' S n: ~ 0_ (fj~ :::I.., :> 0 0:;-- C> i:h 'j: l-" :z :::il p C') a el ,..".,,1 e GI . 1 _ ~Oiiiioi,_j, ~- . .~ ~~'"lit1r- SYDNEY D. CAPLAN IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff : NO. Ol~3Z15 CIVIL TERM JAMES J. TOtJLOUMES, JR., l!:FRONSINI r. TOULOmmS a/k/a FROSO I. TOULOOMES, CONSTANTINE G.J. TOULOUMES, JAMES J. TOULOUMES, III, and JFX-T GROUP, INC., Defendants . . JURY TRIAL DEMANDED P~ELIMINARY OBJECTIONS AND NOW, come Defendants James J. Touloumes, Jr., Efronsinin I. Touloumes, a/k/a Froso I. Touloumes, Constantine G.J. Touloumes, James J. Touloumes, III, and JFK-T Group, Inc., by and through their Attorneys, Knupp, Kodak & Imblum, P.C. and preliminarily object as follows: I. LEGAL INSUFFICIENCY 1. The Plaintiff's Complaint makes allegations of advances and loans which are unsupported by written documents and violate the Pennsylvania Statute of Frauds. 2. The Plaintiff's theory concerning the piercing of the corporate veil is unsupported by documentation in violation of the Pa. R.C,P. 1019 (h). 3. The Plaintiff's breach of contract action is in violation of the Pennsylvania Statute of Frauds. 4. The Plaintiff's Count for promissory Estoppel both violates the Statute of Frauds and Pa. R.C.P. 1019 (h). 5. plaintiff's Count for Unjust Enrichment also violates ,"-- - - ~~~ " ~~ ""- " " ~" ~. -, ~~;l the Pennsylvania Statute of Frauds and Pa. R.C.P. 1019 (h). II. FAILURE OF PLEADINGS TO CONFORM WITH RULE OF COURT 6. The averment made hereinabove, insofar as they are sufficient to establish a violation of Pa. R.C.P. 1019 (h) are incorporated by reference. III. INSUFFICIENT SPECIFICITY IN A PLEADING 7. The Plaintiff's pleading, insofar as it makes averments without reference to documents which would establish any loan arrangement or contractual arrangement by and between the parties lacks specificity and is legally insufficient to establish a cause of action. Further, to the extent that any allegation alludes to the substance of fraudulent conduct, Plaintiff has failed to plead such conduct with specificity (pa. R.C.P. 1019 (b)) . WHEREFORE, Defendants request that Plaintiff's Complaint be dismissed. Respectfully submitted, KNUPP, KODAK & IMBLUM, P.C. -~er~.~~~ Attorpey LD. N. '83 407 North Front Street P.O. Box 11848 Harrisburg, PA 17108 (717) 238-7151 Attorney for Defendants Date: ~)~ \~. \ oea ~ 2 ~~~, ~'__,_ - "J .. . ... , ' CERTIFICATE OF SERVICE !, Robert L. Knupp, Esquire, hereby certify that I have served a copy of the foregoing preliminary Objections on the following person(s) by depositing a true and correct copy of the same in the United States Mail, first class, postage prepaid, at Harrisburg, Dauphin County, Pennsylvania addressed to: JAMES P DEANGELO ESQUIRE MCNEES WALLACE & NURICK LLC PO BOX 1166 HARRISBURG PA 17108 KNUPP, KODAK & IMBLUM, P.C. ,,-.-, ""~ -- -:-3 ~ Robert L. Krtupp' '" 407 North Front Street PO Box 11848 Harrisburg PA 17108-1848 717 238-7151 Dated: ~ ~ ~ a...,^ ~ _,-\., u=-- " ",\ - , ,-~ ~ lllLi$) " !. . ", -I / ,< .I' ".... oh ,," (') c:: ~ -vcr.: nit,' Z::r.," :2: r~'" ~.:~:. <c; )'.....-. zc" ;;;0 C -".. ~ . . . '~M '. '_ " '" ~Mt~bi:' > " - . . . o c) -n C) ~"q ("'"") 7l '" ".", (')) l~' -c , , :~) ~I~ .::.:j ,;'0 :< :Jl .-J "." ."", ~ ~ , ,:~, . .~, . , ~. , ~- ,~ ~ ,.",'" " " ~ ''"'iiii!tjj;!miWi I PRAECIPE FOR LISTING CASE FOR ARGUMENT (JoU;t be typewritten and subnitted in duplicate) TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Please list the within matter for the next Arglm!nt Court. --------------------------------------------------------------------------------------- CAPTION OF CASE (entire caption must be stated in full) Sydney D. Caplan (Plaintiff) VB. James J. Touloumes, Jr., Efronsini I. Touloumes a/k/a Froso I. Touloumes, Constantine G.J. Touloumes, James J. Touloumes, III, and JFK-T Group, Inc. (Defendant) ~. Civil 01-3215 19 1. State matter to be argued (Le.. plainilif's IICtion for new trial, defendant's demurrer to carq;>laint. etc.): Defendants' preliminary Objections 2. Identify counsel who will argue case: (a) for pl.aintiff: James P. DeAngelo ~s: McNees Wallace & Nurick LLC 100 pine Street Harrisburg, PA 17101 (b) for defendant: ~s: Robert L. Knupp Knupp, Kodak,& Imblum, P.C. 407 North Front Street Harrisburg, PA 17101 3. I will notify all parties in writing within 1:\\10 days that this case has been listed for argunent. 4. Argunent Court Date: Dated: December 18, 2001 ~ tt~ far Pla1nt1 f James P. DeAngelo - :.;<'.. ...(. ,->-1.<.. "'illtlll!l~;;i (") :::;:. ,- ",! C "I'] .".. ::::> ..'... ""Dee; '-" mr'": " 2::)) --., ~~, <D :_~~ ~~, ~ ~. , "-~ ;:~~, zV .'.. n "h::() W '.:.)' ~c.: :;.~ ~ => 5:~ .r;- -, " I -,-" - ~-~1"> ~l (' SYDNEY D. CAPLAN, Plaintiff v. : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 01-3215 CIVIL TERM JAMES J. TOULOUMES, JR., EFFRONSINII. TOULOUMES a/k/a FROSO I. TOULOUMES, CONSTANTINE G.J. TOULOUMES, JAMES J. TOULOUMES, III and JFK-T GROUP, INC., : JURY TRIAL DEMANDED PRAECIPE TO THE PROTHONOTARY COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA SUGGESTION OF BANKRUPTCY Please be advised thatJFK-T Group, Inc. filed for protection under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the , Middle District of Pennsylvania to No. 1-02-00446 on January 29, 2002. Respectfully submitted, ~ ~---- ~~"'? Robert L. Knupp, ",,) Knupp, Kodak & Imblum, P.C. PO Box 11848 407 North Front Street Harrisburg, PA 17108 (717) 238-7151 ~- ~ . ~- ~il,,",",,"~"-l.; . ~ ... '''-(1",01 , " , . CERTIFICATE OF SERVICE ..,- -:f-'GB"i!-UAf2..\{ I hereby certify that on this the j..; day of 1_. ny, 2002, I placed in the United States Mail, postage prepaid the within document to the following: JAMES P. DeANGELO, ESQUIRE MCNEES, WALLACE & NURICK, LLC PO BOX 1166 HARRISBURG, PA 17108-1166 ....... {;--- Robert L. Knupp '" ,-" r, '" 8 'T:J[i O1P1 <::r, ~~. ~<.:: :.:;:0 ~C') $0 ~ ~, ~illIl!ti'. ~--"-1&!l~1' , . ., "" C "V ...., ....., co I .e- ~ ~ "V <::) c' .T1 -"I ,"\:;[; 3:';FS ~._)('- ""':)-rf i:,:r:3 '"~('" 0"'" :;! :g .,~ "" , JL ~ . ]~\ PRAECIPE FOR LISTING CASE FOR ARGUMENT TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Please list the within matter for the next Argument Court, -~~~~--~-~~-_._---~...__._----------~-~~--~~~---~~----~~~---~---------_..._-~._------._----~----_._~~~~-------.----- SYDNEY D. CAPLAN, Plaintiff v. NO. 01-3215 CML TERM JAMES J. TOULOUMES, JR" EFRONSINI 1. TOULOUMES AfKJA FROSO I. TOULOUMES, CONSTANTINE G. J. TOULOUMES, JAMES J. TOULOUMES, ill, AND JFK- T GROUP, INC. Defendants 1. State matter to be argued (i.e., plaintiffs motion for new trial, defendant's demurrer to complaint, etc.): Defendants' Preliminary Objections 2. Identify counsel who will argue case: (a) For Plaintiff: James P. DeAngelo McNees Wallace & Nurick LLC 100 Pine Street Harrisburg,PA 17101 (b) For Defendants: Robert L. Knupp Knupp, Kodak & 1mblurn, P.C. 407 North Front Street Harrisburg, PA 17101 3. l,will notify all parties in writing within two days that this case has been listed for argument 4. Argument Court Date: Dated: March 5, 2002 ~. - ~, ~"'~"~ "-~f4' f ~ ~~ !~~ ~ C5 <I) ::r::B .b. ~ t ~ CI') c.r, l] .,... ......N' (s~~f) c5Q" 'b! ~ ~~ . /-,.. j ""~~,~ -"'"'" ,~ ~_..'. ~iIiL~~~~"-'i' " , , SYDNEY D, CAPLAN, Plaintiff v, IN THE COURT o.F Co.MMo.N PLEAS o.F CUMBERLAND Co.UNTY, PENNSYLVANIA CNIL ACTIo.N - LAW JAMES J. To.ULo.UMES, : JR., EFFRo.NSINI I. To.ULo.UMES a/k/a FRo.So. I. To.ULo.UMES, : Co.NSTANTINE G.J. To.ULo.UMES, JAMES J. : To.ULo.UMES, III, and JFK-T GRo.UP, INC., Defendants NO. 01-3215 CIVIL TERM IN RE: DEFENDAlNTS' PRELIMINARY o.BJECTIONS TO. PLAIN11FF'S COMPLAINT . BEFo.RE Ho.FFER. P.J.. o.LER and GUIDO. JJ. o.RDER o.F Co.URT AND No.W, this 1st day of April, 2002, upon consideration of Defendants' , preliminary objections to Plaintiff's complaint, and it appearing that by order of court dated March 4, 2002, the Honorable Robert J. Woodside authorized the continued prosecution of the present action by Plaintiff against Defendant JFK-T Group, Inc., debtor in a bankiuptcy proceeding at No. 1-02-00446 RJW, United States Bankiuptcy Court for the Middle District of Pennsylvania, and following oral argument held on March 27, 2002, the preliminary objections are denied, and Defendants are granted twenty days from the date of this order in which to me answers to Plaintiff's complaint. BY THE Co.URT, r' . f::iLEC~J\:r-iC.t OF !'~_:'~ :"~:;~':'~:"~~,\DrARY 02 f,PR ., 2 AH 10: S5 CUM8[R0\';~G c;CUN1Y PENM,Ylv/\N','\ 'I. ~ '", - '!~",", ~, ~~ "~ , "~ ""~ .,r,_' ~,~ .."~- """""" ,,l_.~ ,~ James P. DeAngelo, Esq. Debra P. Fourlas, Esq, 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 Attorneys for Plaintiff Robert L. Knupp, Esq. 407 North Front Street P.O. Box 11848 Harrisburg, PA 17108 Attorney for Defendants :rc ~~ <j _p;1. 6.3 9-. - "~ "<'~r' II ,4-b( - - ~, , ~ Co", '_ ~-L~ _ "~ ....... .~,- l~ "'~ SYDNEY D. CAPLAN Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA vs. NO. 01-3215 CIVIL TERM JAMES J. TOULOUMES, JR., ET AL Defendants PRAECIPE TO ENTER APPEARANCE TO THE PROTHONOTARY: Enter our appearance on behalf of Defendants, JAMES J. TOULOUMES, JR. and EFFRONSINI TOULOUMES alk/a FOROSO L TOULOUMES in the above matter and serve all papers upon us at the address listed below. Jacques H. Geisenberger, Jr., Esq. GEISENBERGER & COOPER, P.C. Lower Level. 45 East Orange Street Lancaster, PA 17602-2846 By: es H. Geisenberger, Jr. mey for Defendant(s) ~S J. TOULOUMES, JR. and EFFRONSINI1. TOULOUMES a/k!a FOROSO L TOULOUMES Lower Level, 45 East Orange Street Lancaster, PA 17602-2846 (717) 397-3500 LD. No. 06947 Dated: April 4, 2002 The appearance ofGEISENBERGER& COOPER, P.C. entered for JAMES J. TOULOUMES, JR and EFFRONSlNl L TOULOUMES alkfa FOROSO 1. TOULOU S as above directed. Dated: April/!.., 2002 2-002J65-LET!2 '- ~ "w,_ "- ~-~,~ "~-,..: g 0 ~ N s: '- :t! ~!B ' " ;;0 ~:! ~S; I CD :0 ' ;,;::6 Q. -0 g~ fB :x '" ~ .. ~ \D - ,,"..~ - ~ " ~~,;" ,. SYDNEY D. CAPLAN Plaintiff IN mE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA vs. NO. 01-3215 CIVIL TERM JAMES J. TOULOUMES, JR., ET AL Defendants PRAECIPE SUGGESTING BANKRUI'TCY OF DEFENDANT JAMES J. TOULOUMES. JR. TO THE PROTHONOTARY: Defendant, James J. Touloumes, Jr., one of the Defendants in the above Case filed for relief under Chapter 13 of the United States Bankruptcy Code on April 3,2002 with the United States Bankruptcy Court for the Middle District of Pennsylvania, Case No.1-02-01793. A copy of the Petition is attached. Defendant suggests that this filing imposes a Stay of any further proceedings in the above Case under 11 U.S.C.A.~362(a)(I). Dated: April 4, 2002 s H. Geisen rger, Jr. ey for Defendant( s) S J. TOULOUMES, JR. and EF ONSINI L TOULOUMES alk/a FO OSO I. TOULOUMES Lower Level, 45 East Orange Street Lancaster, P A 17602-2846 (717) 397-3500 1.0. No. 06947 By: 2002165.LETl3 '" . ~tll<~""""""""'''''ll1iilIflhI~"'':"~ oJ,.,_ . " ~ " . "" , -'-'''''-.' -F''"'''''~ ~ . lWi@:l!lMii<t;;;0' , 1':~~'> 'FCifl'!!'Bi''T-.,tll\j:\(.~_l . L ...-~., _..~. ..---. _.' _.United States'Bankruptcy Court.. MIDDLE District of PENNSYLVANIA Name of Debtor (II mctNIClllot ..n&er L8111 FlIlM. Mlckllt! Name or Joint Debtor (:'lplltlMI~)(I..U.t. Fllst MItkUeI. :rOUiOWlleS, Jr., James J. tdba !'. Ji1mzIy's AU O\her Names uaed by 'he OebtOlln the 1as16 years (1i'1CIa nncllltld. tni1I!den and II.!' ~111S' NONE An Othet Names used by tha Joint Debtor in !hellsl 6 years ""~.n'~~~~~9@~W Soc. SeclTax 1.0. No, f' rnaw DI.1l1tllte, Slal....111 186-~8-27S0123-2193I9I SUeet Address of Oeblot If lrJ ~ ~ptll r../~ ~ollt'.\ l'~' Cmll") 328 W. Old York Road CARLISLE PA 17013 See Sec.;Tax 1.0. No. ;1' ~llllll' rt1<1:1 Ufle !sI"I4.' .lln Street Address of JOint Debtor .}.n ~ ~-:tl~'! -:':'l~ ';','1\' .~. lip ,;l)tjl'! Counly of Residence or a/the Principal Place of Business:: Cumberland Mailing Address at Debtor (II tllff('fl"lt l~:)11I 'W~'t'1 ;IIJdfl.....i SAME Counly 01 Residence or of the PrinCl~' Place of Business: Mailing Ac!dress of JOint Oebtor "f',l''',''/w. !ml" ...llf'l~ .iI(]I~.'!.I loeellon 01 Pnl\Qpel Assets 01 Business Oebloc fit U"fC"l~"lr "\1111 ""C.!ftI.rc.i~r.>> atJc.owl T. Jimmy's Place 5 W. Pine 'Street Me. Bol!-1' ;Spri1;'l E'A [:;.1~~Hi~;;;~~1~~~#1~ql~.~ .'~~:~1~.~ ... :~~.~m~.~.;"~~::, ':. 3. :.;.,t:~~:; Venue (Cheok any applicable boll) 1&1 Cebtor has been cIomlclied or has hod. residenc" principal place 91 busine.., or prlncipal.....ts in tms Oistricllcr 180 lIayS imme<tlalely preceding the date of this petition or for a I~gll!r part'of sUch 1 eo days than in any other District. o There is a bankruptcy case CQncarl)ing doblor's amnil\e. gener.' partner, or p.rtnership pending in this District. Type 01 Deblor (Cheok an boll.. that apply) Ch'pler 01 Se<:tion of B.nkruptcy Code Under Which I&Ilndividual(s) 0 R.i1road the Patitlon 1$ Flied (Check one boll) o Corpor.Iion 0 Slocldlroker 0 Chapter 7 0 Chapter 11 181 Chapler13 o Pa_romp 0 ComrtlQdllySroker 0 Chapler9 0 Chapter12 o Other 0 Sec:. 304 . Ca.. ancinary 10 foreign proceeding Nature of Debts o ConsumeriNon-Bl.lslne&s {Check one box, 181 8usiness Filing Fee (Cheal< one box) 181 Full Fling Fee attached o F'lingFealQ be paid in installments (Applicablelo individuals only) Musl attach signed ap"Ucalion for the court's conSIderation certifying tl1al ,the debtor is unabfe to pay fee eKeept In intt8llments Rule l006(b) Set OffiCial Form No 3. Chapter 11 Small Business (Check all b""esthal appiy) o OeblOli.a small business as ctefoned in 11 U.S.C ~101 o Debtor is and elKts to be considered a small business under 11 U,S.C.! 1121 (e){Opfional) s,atisUcallAdministrative 'nformation (EslimJlles onIYI ,:".,~~ ::J"':.::c 1$ ,-;( .-~,..I;;!;t .I~a. '::.NI., v o Debtor estimates that tUI\dS \'V1/1 be available for dlslribullon to unsecLlred c[edifOrs gI Oe"tor estimates that. after any exempt property 1$ excluded and adrtMiatrative expenses paId, lhere will be no funds available for distrIbution 10 unsecured creditors o 1&1 o 0 0 0 <. ,... ...., ~ = :t: = ...., 1> C' >- ~. "tl :0 r :;0 '" --., I "- ~' W ')r- C: -0 :1 -e :JI: <' .... .z:- (":. .. c ~ g en .... Estimated Number of Creditors 1b It"M" :\0 i'" 1(.':: I:~' :Ct ;'!If' ';)Q.Jlt.('f Estimated A.sset$ ~" to $~.xl11l) $10000111:1 S!:",ooa01la $:.000001 la ~ 10 000 001 1:1 Sf,:;; .1:'J ~I tel 1I.1CM'l;'lh,1n Mt',)OO ~'OOoct. $S\Y.l.00<:0 S11lllllmn "0nMtiI0i' Ss,,"'tlll,jllon 11QOrn,IIi:;m $',>>'tll~'OIl 0 181 0 0 0 0 0 0 Estimated Debts .... $~OO'IC $100.00' 10 $sonOOt \(\ S\Ql):!QCII ~ S1000cOOlm SsaaooOOtla tkll"U\l'\t\ S:5l:,ooo UODOOO SOOlJOQO S1nli'lkon Slc.1m111lon SrlOm,blClI $1lJDml1l1an $100n1l1l1Ol1 0 0 1&1 0 0 0 0 0 .._~ ~'~~~ii"""',"~~""",j.J?JiliJblW..,J;,;._.....,,,,- ... "........,...., "'..}..._'o#<.....,......._.,... ..... 'ir .-. _.~ .'..:".... , "" ,voru,ntaryPetition--' .-:~. _d..... .... ~ -(rhls pig. .'!'1Ist bii,~cmp/lmd IItId /II.a-1ii' ;;V;'leue) .-".-:<":....;.; ~ I. ~ .-. .~ -~~~~,;>[;,;~"w<Ojj,~-~,~~""""""~'" -',.'-' Name-Of O'blor(s): . .~. . . FORM.B1, ",ge2 -.o':<:,!~ ~.~'.:.~:, .' . ""I:,; , SI~~atur'lsl 01 Deblor(slllndividuaUJolnll I declare under pe$llly 01 pe~ury that thelnlonnalion provided in this petiliQn is true' a~d::l:9i'reCt. (ff p'lItioner IS ~ ~~V(dual whcae debls are primarily consumer_ and has chOS""td:~1e under chapter 7Jlam aware thai I may proceed unde, chapte" 7, ;1( 12,0,13 0ltillel1, Un. Slates Cado, undOlllland the ~ol ml.1ll1l under each such chapter, and choose 10 ptOQCOd under chapter: 7: I 'eq...t rellel in ~nca with the chaple' 01 line 11, United Slates ~ode~~. ;In.':.~lsPOt~ ~9^ of Oel'lDr' X SiClnllWe of Jain!: ~bfot T__'IlI""_"_O'/I ",.. ~5 East Oranae Street. ....... .tower Leve.! ~caster PA 17602-2846 (717) 397-3500 Tlltpllctne Numller 0iI1e exhibit A (To be completed II debtor is required \0 me penodie repons (e.g.. larms 'OK and 100) with the Securities and Exchange Commission pursuant to Sec:lion 13 or lS(d) 01 the SlCurilles Exchange Act 01 1934 and Is requesllng rallol under chapter 11) o E"'ib~ A is aUached snd made a pan 01 this paUllon. Exhlbll B (To be competed II detllor Is an individual whose debts are primarily consumer debtS) I,the attornay for the pelitlonet named in the ror.gc;ng petillon, decllre thell have informed the pelltioner that [he or she) msy plO<eed undor chepler7, 11. 12, or 13011111011, Un.ed Slales Code, anaha.e pPlained the relief avolllble under each such chapter. X Silnltwe of Aaamey II:u' Otbtor{l) - Signature ot IlebIot (CorporallonIPlIl1nershfp) I declsre under penally of pe~ury thaI the inforrnallon provided In this pellllon is true and COlTOCt. and thai I have lleen authoriZed \0 file this petition on beha" or the deblOl'. The detllor requests relielln accordance with the chaplet or 1ll1a 11, United States Cade, spec:lfled In this pellllon. X SitNllilt. at AudlonHd Indiwlduel PnnlH Nallle oJ AWtIoriHIIlndMdUal TlIIeolAultlorindIndMchtIl Olio Signalure 01 Non-Altomey PtlfUon Prepirer .... I certify thaI I am a bankruptcy petition preparer U defined /n." U.S.C, SIlO, thl'll prepertd thie documenll'Ol' ccmpeneatIcn, and~L'I- . prcvidaclthe de_wlth a copy Oflhls document. . .....,~ '.' "'{":,',; . .il.. ;i:.~.\,1f~:':'~ ",J... Pnnl. Nllme rJ e.,w.., Petition PrelUlrer ~. C> o N ".. ~ ~c 1 CC .-.... },:'Q' Social Secllhty Number ~g9 {.J: ... ~ ..." i!i:kl ~8 :x ~.0 t>"" c: "t't _~ Nemes and Social Security numbets of all ~ IndIv!IIllals WIi1l prepared or assisted in preparing this documiiil: \D :::;; AddltSl II more than one person prepared this document, albloh additiOnal sheeta "",,'orming to the appropriate orrlCiai lorm lor each paIICIl. X Signahlre of BlnkNptcy PetItion Prepllt~ "'" A IlanlO'Uptcy petition """arer'slallura 10 comply with the pr_no 01 We 11 and the Fedetll Rules of SankruplCy Prccedura may result in lines 01' imprisonment or both 11 U.S,C, SIlO; 18 U.S,C. S 156, ';~~;" .~ :. ~'~~"'_......~- "' ~'....."'l..,d .. .Mt"~a,~ ()\-.];2IS c.'ull ~ ..., @@(P))f UNITED STATES BANKRUPTCY COURT . lAD'" V"EfWARY FOR THE MIDDLE DISTRICT OF PENNSYL V ANI,fi, . JI,\i)) INRE: Case No, 1-02-01793 JAMES J, TOULOUMES, JR. t/cl/b/a T. JIMMY'S Chapter 13 Debtor 1- 02-,00091 A NOTICE OF REMOVAL James J. Touloumes, Jr. ("Debtor"), by his attorneys, Jacques H. Geisenberger, Jr" Esq" files this Notice of Removal and respectfully represents: ALL DOGUMEIHS REGARDING THIS MATTER MUST BE IDENTIFIED BY illlI!:!.ADVERSARY AND BANKRUPTC'PCASE NUMBERS. ..... "" ::0 g =c x ~ :Po ~ ~ ::0 ~ -."9 ::::0 tc: ,..... -." )> N <1>_ 5i w ~::;; ~ -0 ~.,c ." :J: C") ~ . No, NO. 01-3215 CIVIL TERM ~ <'> o c: ::0 .... I. There is presently pending an action entitled: IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW SYDNEY D. CAPLAN Plaintiff :~ 2, On April 3,2002, Defendant, filed a voluntary petition under Chapter 13 of the vs. JAMES J. TOUlOUMES, JR., ET AL Defendants Bankruptcy Code with the United States Bankruptcy Court for Middle District of Pennsylvania. Debtor continues to operate his business, T, Jimmy's Place, as Debtor-in-Possession and is presently acting in such capacity. 3, Pursuant to Bankruptcy Code section 544(b), Debtor-in-Possession is the successor in interest as Defendant in said state court action, 2002165.BANffl ~~ .. : ~" "'O~-~'"'l~,'t' 4. Pursuant to 28 U.S,C, ~ 1452 and Bankruptcy Rule 9027, Debtor removes the above-captioned litigation from the Court of Common Pleas of Cumberland, Pennsylvania to the United States Bankruptcy Court for the Middle District of Pennsylvania, 5. Removal is timely filed as Defendants' Preliminary Objections to the Complaint were Denied by the Pennsylvania Court on April 2,2002. Defendants, including Debtor, were given twenty (20) days to file an Answer to the Complaint. 6. Upon removal the proceeding is a core matter. 7. Attached as Exhibit "A" is a copy of all process and pleadings filed in said Pennsylvania Court proceeding, Apri129,2002 By: 2002165.BA.N'II3 4 : " I EXHIBIT A , . ," -. " i!i!Jl i:tt.i,'~ 110 ,"'~"'~,.~~.." ~- ~ '=- o..JW-'"_ ~ "~ PYS510 " . 2'001-03215 ~, ~. ..... il\ilillt;i. ~''',,""-,-",~''" "~~~5 Cumberland County Prothonotary's Civil Case Inquiry CAPLAN SYDNEY D (VS) TOULOUMES JAMES Office Page 1 JJRETAL Filed. . . , . . . . : Time......... : Execution Date Jury Trial. , , . Disposed Date.' Higher Crt 1.: Higher Crt 2.: Reference No., : Case Type.....: WRIT OF SUMMONS Judgment. . . . . . . 00 J1,1dge Assigned: D:LSposed Desc. : ------------ Case Comments ------------- 5/25/2001 2:59 0/00/0000 0/00/0000 *****~***~********************************************************************** GenE;iral Index Attorney Info CAPLAN SYbNEY D PLAINTIFF DEANGELO JAMES P , I . ROTHMAN EDWARD W TOULOUMBS JAMES J JR DEFENDANT GEISENBERGER JACQUES H JR 328 WEST!'OLD YORK ROAD MOUN1 HdDLY SPRINGS PA 17065 " :,1 TOULOUME'S .FROSO I DEFENDANT DOLL CRAIG A 328 WES1!!0LD YORK ROAD MOUNT HdLLY SPRINGS PA 17065 .,. TOULOUMBS CONSTANTINE G J DEFENDANT ~olm~TH~l~ ~~~~~as PA 17065 :: ' TOULOUMEs, JAMES J I I I DEFENDANT 272 SUE imRIVE HUMMELST~~ PA 17036 I : ~ JFK-T GRrouP INC DEFENDANT C/O KOS'rJl!'S RESTAURANT 451 NORTH 21ST STREET CAMP HILL PA 17011 ******************************************************************************** * Date . Entries * **********,********************************************************************** 5/25/2001 7/06/2001 7/06/2001 7/06/2001 7/06/2001 7/06/20Gl 7/13/2001 '7/30/2001 8/02/2001 - - - - - - - - - - - - - FIRST ENTRY - - - - - - - - " - - - - - PRAECIPE FOR WRIT OF SUMMONS IN CIVIL ACTION-WRIT OF SUMMONS ISSUED -----------------------------------~------------------------------- SHERIFF'S RETURN FILED Litigant.: TQULOUMES JAMES J JR . SERVED : 6/08/01 WRIT OF SUMMONS MT HOLLY SPRINGS PA Costs....: $36.68 pd By: MCNEES WALLACE & NURICK 07/06/2001 ------------------------------------------------------------------- SHERIFF'S RETURN FILED Litigant.: T~UL~UMES FROSO I ' SERVED : 5 31 01 WRIT OF SUMMONS CAMP HILL PA Costs,...: $ 5. 0 Pd By: MCNEES WALLACE & NURICK 07/06/2001 ------------------------------------------------------------------- SHERIFF'S RETURN FILED Litigant,: TOULQUMES CONSTANTINE G ..; SERVED : 5/08/01 WRIT OF SUMMONS MT HOLLY SPRINGS PI\. Costs...,: $15.00 pd By: MCNEES WALLACE & NURICK 07/06/2001 ------------------------------------------------------------------- SHERIFF'S RETURN FILED Lit~qant.: JFK-T GROUP INC SERVED : 5/31/01 WRIT OF SUMMONS CAMP HILL PA Hnd To: FROSe TOULOUMES Costs. ...: $16.00 Pd By: MCNEES WALLACE & NURICK 07~~~~~~~~________ --------------------------------------------------- SHERIFF'S RETURN FILED Lit~gant,: TQULQUMES JAMES JIll SERVED : 6/29/01 NOT FOUND WRIT OF SUMMONS HBG PA DAUPHIN CO COSTS : $54,25 PO 7/06/01 MCNEES WLLACE & NURICK PRAECIPE-FOR-ENTRY-OF-APPEARANCE-FOR-PLFF-gY-EDwiRD-w-RoHMiN-ESQ--- PRAECIPE-TO-REISSUE-WRIT-OF-SUMMONS":-By-jiMEs-P-OEANGELO-ESQ-FOR-- PLFF ACCEPTANCE-OF-SERVICE-FOR-WRIT-OF-SUMMONs-:-gY-ROBERT-L-KNUP~~~~~~~ ------------------------------------------------------------ ..~~~ ..~ -, - "". .. d" ., ~;' 'i lM:itiJl PYS510 Cumberland County Prothonotary's Office Page 2 Civil Case Inquiry 2o;Ol-On15 CAPLAN SYDNEY D (vs) TOULOUMES JAMES J JR ET AL Reference No,,: Filed.. ...".: 5/25/2001 Case Type.....: WRIT OF SUMMONS Time",...,..: 2:59 Judgment,..". ,00 Execution Date 0/00/0000 Judge Assigned: Jury Trial.... Disposed Desc.: Disposed Date. 0/00/0000 ------------ Case Comments ------------- Higher Crt 1.: Higher Crt 2. : 11/14/2001 COMPLAINT - BY JAMES P DEANGELO ESQ FOR PLFF ------------------------------------------------------------------- 12/18/2001 PRELIMINARY OBJECTIONS - BY ROBERT L KNUPP ESQ FOR DEFTS ------------------------------------------------------------------- 2/04/2002 PRAECIPE FOR SUGGESTION OF BANKRUPTCY - BY ROBERT L KNUPP ESQ ------------------------------------------------------------------- 3/05/2002 PRAECIPE FOR LISTING CASE FOR ARGUMENT BY JAMES P DEANGELO ATTY FOR PLFF - DEFENDANTS' PRELIMINARY OBJECTIONS ----------------------------------------------.--------------------- 4/02/2002 ORDER OF COURT - DATED 4/1/02 - IN RE DEFTS PRELIMINARY OJaECTIONS TO PLFF I S COMPLAINT - FOt.LOWING ORAL ARGUMENT HELD ON 3/27/02 THE PRELIMINARY OJBECTIONS AR DENIED AND DEFTS ARE GRANTED 20 DAYS FROM THE DATE OF THIS ORDER IN WHICH TO FILE ANSWERS TOPLFF'S COMPLAINT - BY THE COURT J WESt.EY OLER JR J COPIES MAILED 4/2/02 ------------------------------------------------------------------- 4/08/2002 PRAECIPE TO ENTER Al?P&~CE FOR DEFT - BY JACQUES H GEISENBERGER JR ESQ ------------------------------------------------------------------- 4/08/2002 PRAECIPE SUGGESTING BANKRUPTCY OF DEFT JAMES J TOULOUMES JR - BY JACQUES H GEISENBERGER JR ESQ FOR DEFT - - - - - - - - - - - - - - LAST ENTRY - - - - - - - - - - - - - - ******************************************************************************** * Escrow Information * * Fees & Debits Beer Bal Pvmts/Adi End Bal * ********************************~********~******~******************************* WRIT OF SUMMONS 35.00 35.00 .00 TAX ON WRIT . .50 .50 .00 SETTLEMENT 5.00 5.00 .00 JCl? FEE 5.00 5.00 .00 ------------------------ ------------ 45.50 45.50 ,00 ******************************************************************************** * End of Case Information * ******************************************************************************** TRUE COpy FROM RECORD !il Tllstlmony whereof. I .. unto SIt mY bind llIld Ille seal aI said Coul'l at cartl5le,Pa. '~~day ~. 6; ~ ~o pi ~;~~ -.'- ',/. I' ~~,.. YDNEY D. CAPLAN, Plaintiff v, JAMES J. TOULOUMES, JR., FROSO J. TOULOUMES, CONSTANTINE G. J. TOULOUMES, JAMES J. TOULOUMES. III, and JFK-T GROUP, INC., ~~ . ~ - ~. (,}; IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 0/.3;16 ~ T:~ CIVIL ACTION - LAW PRAECIPE FOR WRIT OF SUMMONS TO THE PROTHONOTARY OF SAID COURT: Please issue a writ of summons in the above-captioned action. Writ of Summons shall be issued and forwarded to ( ) Attorney (X) Sheriff McNEES, WALLACE & NURICK O~-7 Date: May 25, 2001 :James P. DeAngelo Supreme Court 1.0. 62377 100 Pine Street, P.O. Box 1166 Harrisburg, PA 17108-1166 717-232-8000 Attorneys for Plaintiff '. "" ., ~ ~ ~'- ,"', ~1~ll:>Il,"""\,, ..........,...-. t v, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY. PENNSYLVANIA NO, OJ- 3;; I'>' ~ 'Ti-- SYDNEY D. CAPLAN, Plaintiff JAMES J, TOULOUMES. JR., . FROSO I. TOULOUMES, CONSTANTINE G. J. TOULOUMES, JAMES J, TOULOUMES, III, and JFK-T GROUP, INC., CIVIL ACTION - LAW WRIT OF SUMMONS TO: JAMES J, TOULOUMES. JR., FROSO I. TOULOUMES, CONSTANTINE G. J. TOULOUMES, JAMES J. TOULOUMES, III, and JFK-T GROUP, INC. YOU ARE HEREBY NOTIFIED that Sydney D, Caplan, Plaintiff, has commenced an action against you. Date: 'Ih."J ;)6, ;J.frD I fk:u;; P ~~ Curt Long, Prothon By: Lj;.1() '"Jt......p~,~ (Deputy) Seal of the Court rl'tUE COpy FROM REGORD In Tll8tImony whereof. , t.are unto set my hand and tile seal of said Court". CarfllII8 PI. This ~,\~ ~y atff" .~, 9 .~. ~~~'~J ~ ' Prottlo~ . L, '. , ~ . ~"'.~<ii" SHERIFF'S RETURN - REGULAR . CASE NO: 2001-03215 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND CAPLAN SYDNEY D VS TOULOUMES JAMES J JR ET AL RICHARD SMITH Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within WRIT OF SUMMONS was served upon TOULOUMES JAMES J JR the DEFENDANT , at 2009:00 HOURS, on the 8th day of June ,~ at 3 W PINE ST MT HOLLY SPRINGS, PA 17065 by handing to JAMES J TOULOUMES JR a true and attested copy of WRIT OF SUMMONS together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing Service Affidavit Surcharge So Answers: 18.00 8.68 .00 10,00 .00 36,68 ",",'''J...d ./.::?:? ".~' '.""~,,, -,.,....,... ,~._... 7 <r.r..:~,.' ...~...., ~ R. Thomas Kline 07/06/2001 MCNEES WALLACE K Sworn and Subscribed to before By: me this /JT!::::. day of ~:::1 .:1110 I A.D. ~l.o<- 0. ""dO,- IOf"i:' Prothonotary' , ~'~ " ' . < ,. - iU *;;,;,,;, SHERIFF'S RETURN - REGULAR C~SE NO: 2001-03215 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND CAPLAN SYDNEY 0 VS TO\JLOUMES JAMES J JR ET AL CPL MICHAEL BARRICK , Sheriff or Deputy Sheriff of cumberland County,Pennsylvania, who being duly sworn according to law, says, the within WRIT OF SUMMONS TOULOUMES FROSO I was served upon the DEFENDANT at 1815:00 HOURS, on the 31st day of May , 2001 at 451 N 21ST 8T CAMP HILL, PA 17011 by handing to a true and attested copy of WRIT OF SUMMONS together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing Service Affidavit Surcharge 6.00 9.30 .00 10,00 .00 25,30 So Answers: -"", ~ ..__.:?,,~. ~ ",." "," J'.. ........:... , , .. ,..... / ;~~if.,,,,""'::".\'.~;,.t;': _/'~""=--~ I . .-I....~ .I R. Thomas Kline Sworn and Subscribed to before me this f'3 r;:; day of ~ ,},/)'f)/ A,D. rL. C2 !hJ"": ~~ ~othonotary 07/06/2001 MCNEES WALLACE &. NURICK '7 () By: /fI4t O~ oep~f '" ~ .- ~~" ~ t" _ . 1~-""''''1 SHERIFF'S RETURN - REGULAR L CASE NO: 2001-03215 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND CAPLAN SYDNEY D VS TOULOUMES JAMES J JR ET AL RICHARD SMITH Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within WRIT OF SUMMONS was served upon TOULOUMES C0NSTANTINE G J the DEFENDANT , at 2009:00 HOURS, on the 8th day of June , 2001 at 3 W PINE ST MT HOLLY SPRINGS, PA 17065 by handing to CONSTANTINE TOULOUMES a true and attested copy of WRIT OF SUMMONS together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing Service Affidavit Surcharge 6.00 .00 .00 10.00 ,00 16.00 So Answers: ., ~ r,J...-r,,' . -...........;:i.:~".."":~~'-t' h"",~ r ",',. ~"...' - ~l ~.""'"' R. Thomas Kline 07/06/2001 MCNEES WALLACE Sworn and Subscribed to before By: me this 131!: day of ~~_ .2&1>1 A,D. ~1b" D. "dh~ I ~ !'ir thonotary ''','~~.. ".........---j ~i .. ~ - ~ '..' ~ . " "."~a4,^" SHERIFF'S RETURN - REGULAR , CASE NO: 2001-03215 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND CAPLAN SYDNEY D VS TOULQUMES JAMES J JR ET AL CPL MICHAEL BARRICK , Sheriff or Deputy Sheriff of Cumberland County, Pennsylvania, who being duly sworn according to law, says~ the within WRIT OF SUMMONS JFK-T GROUP INC was served upon the DEFENDANT , at 1815:00 HOURS, on the 31st day of May , 2001 at C/O KOSTA'S RESTAURANT 451 N 21ST ST CAMP HILL, PA 17011 by handing to FROSO TOULOUMES a true and attested copy of WRIT OF SUMMONS together with . and at the same time directing Her 'attention to the contents thereof. - . Sheriff's Costs: Docketing Service Affidavit Surcharge So Answers: 6.00 .00 .00 10.00 ,00 16.00 ~~~--<~ R. Thomas Kline . Sworn and Subscribed to before ma ~/::~ day of AD 1cu- )JIJ dO. " A./jtJtj . P othonotary 07/06/2001 MOO'" ","LACE. ~. /' By: ~:t- ~ Deputy Sh iff " '=~~- ~~ "I' -, - <'. '~' 'irl-'. ;" In'The Court of Common Pleas of Cumberland County, Pennsylvania Sydney D. Caplan YS. James J. Toulournes Jr. eta1 SERVE: James J. Touloumes III No. 2001 3215 civil Now, 5/29/01 , r, SHERIFF OF CUMBERLAND COUNTY, P A, do hereby deputize the Sheriff of Dauphin County to execute this Writ, this deputation being made at the request and risk of the Plaintiff. r~.e<~df!M' SherifIofCumberland County, PA Affidavit of Service Now, ,20_, at o'clock_M, served the within upon at by handing to a CDpy of the original and made known to the contents thereof. So answers, Sheriff of County. PA Sworn and subscribed before me this_day of ,20_ COSTS SERVICE MILEAGE AFFIDAVIT $ $. "&.~~.. ~ .~.- "- ~ J~ " _ .,~ .,-J_ ' .;,,' U\'~;,,,",,~', ()\)fHce of t4.e ~4exiff William T. Tully Solicitor J. Daniel Basi Ie Chief Deputy Mary Jane Snyder Reai EsIale Dep..ty Michael W. Rinehart Assistant Chief Deputy Dauphin County Hanisburg, Pennsylvania 1710 I ph: (717) 255-2660 fax: (717) 255-2889 Jack Lotwick Sheriff' Commonwealth of Pennsylvania CAPLAN SYDNEY 0 vs County of Dauphin TOULOUMES JAMES JIll Sheriff's Return No. 1535-'1' - -2001 OTHER COUNTY NO. 2001-3215 I, Jack Lotwick, Sheriff of the County of Dauphin, State of Pennsylvania, do hereby certify and return, that I made diligent search and inquiry for TOULOUMES JAMES J III the DEFENDANT named in the within SUMMONS/PRAECIPE/INTER/REQ FOR PROD DOC and that I am unable to find him/her in the County of Dauphin, and therefore return same NOT FOUND, June 29, 2001 NEED A BETTER ADDRESS FOR DEFENDANT. NUMEROUS CARDS WERE LEFT AT RESIDENCE NO RESPONSE. A NEIGHBOR SAYS A COUPLE LIVES AT 272 SUE DR., HUMMELSTOWN. EXPIRED 6/25/01. ''', "~'~::; ?7(~ Sworn and subscribed to before me Sheriff of Dauphin County, Pa. PROTHONOTARY By Deputy Sheriff Sheriff's Costs: $29.25 PO 06/07/2001 RCP'!' NO 150737 ,+,,-~.,,;".~"~ - - -~ , ~ 'd. 'lit"' ,t,u!" SHERIFF'S RETURN - OUT OF COUNTY . CASE NO: 2001-03215 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND CAPLAN SYDNEY D VS TOULOUMES JAMES J JR ET AL R.Thomas Kline , Sheriff or Deputy Sheriff who being duly sworn according to law, says, that he made a diligent search and and inquiry for the within named DEFENDANT , to wit: TOULOUMES JAMES JIll but was unable to locate Him in his bailiwick. He therefore deputized the sheriff of DAUPHIN County, Pennsylvania, to serve the within WRIT OF SUMMONS On July 6th , 2001 , this office was in receipt of the attached return from DAUPHIN Sheriff's Costs: Docketing Out of County Surcharge Dep Dauphin Co '..f 6.00 9.00 10.00 29.25 ,00 54.25 07/06/2001 MCNEES WALLACE So answ~~ R:Z:-~ Kline Sheriff of Cumberland County & NURICK Sworn and subscribed to before me this /3e day of CJ...7 Jvv} A.D. ~() "'iLL.,;, AJ;;f prothondt " - , - ' ~, ""', -~= ~~~., , ". ~''''"'''',~"~ " .~ ""--"",2' //'. SYDNEY D. CAPLAN, Plaintiff v. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 01-3215 CIVIL TERM JAMES J. TOULOUMES, JR., FROSO I. TOULOUMES, CONSTANTINE G, J, TOULOUMES, JAMES J. TOULOUMES, III, and JFK-T GROUP, INC., PRAECIPE FOR ENTRY OF APPEARANCE TO: CURT LONG, PROTHONOTARY I Please enter my appearance in the above captioned case as co-counsel for Plaintiff Sydney D. Caplan. James P. DeAngelo, Esquire, of McNees, Wallace & Nurick continues his appearance for Plaintiff. ~~t..J~ Edward W. Rothman Supreme Court 1.0. 7244 1435 Appletree Road Harrisburg, PA 17.110 717-236-6687 Attomey for Plaintiff Date: July 12, 2001 "r ~~ - ~ ,,;;. , -<,~ ;, " ~ ,~ -~ 'M ~;~~ - .:, v J" 1!il!""M SYDNEY D, CAPLAN, Plaintiff v. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 01-3215 CIVIL TERM JAMES J, TOULOUMES, JR., FROSO I. TOULOUMES, CONSTANTINE G. J. TOULOUMES. JAMES J. TOULOUMES, III, and JFK-TGROUP, INC., PRAECIPE TO REISSUE WRIT OF SUMMONS TO THE PROTHONOTARY: PLEASE reissue the attached Writ of Summons for service upon Defendant James J. Touloumes, III. Attomey Robert L. Knupp, 407 N. Front Street, Harrisburg, has agreed to accept service on behalf of Defendant James J. Touloumes, III. McNEES WALLACE & NURICK LLC James P. DeAngelo Supreme Court I.D. 62377 100 Pine Street, P.O. Box 1166 Harrisburg, PA 17108-1166 717-232-8000 Attomeys for Plaintiff Date: July 30, 2001 .4'~ I.>.. ~'" .. .... ~ ,', . ~'.mliR:'tj., SYDNEY D. CAPLAN, Plaintiff v. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 01-3215 CIVIL TERM JAMES J, TOULOUMES, JR., FROSO I. TOULOUMES. CONSTANTINE G. J. TOULOUMES, JAMES J. TOULOUMES, III, and JFK-T GROUP, INC., ACCEPTANCE OF SERVICE I accept service of the Writ of Summons on behalf of Defendant James J. Touloumes, III, and certify that I am authorized to do so, Dated: -~bert~.~~ Knupp.-Kodak ~ l~ ~C- 407 North Front Street I P. O. Box 11848 Harrisburg, PA 17108-1848 (717) 238~7151 , ""' "'" ~- ....~~. - ~, ,'" , - ~'.,,-...h T -~J' l\ ' oct , ~/ /0 ( '31,'>1') \~ .' ~ . ? . \. .v, IN THe COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 01.3215 CML 1"ERM SYDNEY D. CAPL.AN, Plaintiff - JAMES J. TOUL.OUMES, JR.. EFFRONSINII. TOULOUMES 'elkfa FROSO .1. TOULOUMES. CONSTANTINE G. J. TOULOUMES, JAMES J. TOULOUMES,III, and JFK-T GROUP, tNe.. i? ;::. ..., ",. ...., JURY TRIAL DEMANDED jfiJ :Ill ''1 <::> "~i ::n 0< '" ~g - "1'1}.!' .::- .J,!' ," "'0 ;J.? Ig :B: ;'~ h ~jrl COMPLAINT ?J ~ w -< The Partin 1. Plaintiff, Sydney D. Ceplan.le an adult individual residing at4078 Greystone Drive, Hamsburg, Pennsylvania. 2. Defendants JamlJ$ J. Touloumes, Jr. and Effrcnslnll. Touloumes alkJa Frcso I. Touloumes are husband and wife and are adult Individuals residing at 328 West Old Yorl< Ro8cl, South Middleton TownshIp, Cumberland County, PennsylVania, 3. Defendant Constantine G. J. Touloumes is an adult indMdual residIng at :,; WNt Pine Street, Mount Holly Springs. Cumberland County, Pennsylvania. 4. Defendant James J. Touloumes, III Is an adult Individual believed to reside at 272 Sue Drive, Hummelatown. Dauphin County, Pennsylvania. 5. James J. Touloumes, Jr. snd Efli'cnslnll. Touloumes a/k1a Froso I. Touloumes are the parents of Constantine G. J. Touloumes and James J. Touloumes, III. 6. Defendant JFK-T Group.lnc. (-JFK-r) Is a Pennsylvania corporation d/b/e Kosta.s. a restaurant with its primary place of buslnsssln east Pennsborc ~'d 9S2'IJN wnnaWI i ~~o~ ddnN~ Wd6t:t ~aa~'Z2'~ ..;.' i""" ~" ""'-<.,"" - i,.".'- ~ 4!i!l!IW:li&'\; TOWl'I8hlp, Cumberland County, Pennsylvania and having a street address of 451 North 21st Street,C2Imp Hill, PA 17011 (the "Real Property"), 7. Upon information end belief, the lncfrvidual Touloumeses ara all the officers, directors, and shareholdars of JFK- T, each ovmlng a 25% Interest in JFK. T. 8. The Individual TaulDumeses are the owners of the Real Property on which' Kosta's is located, and lease the Fteal Froperty to JFK. T, 'the Loans e. On various occasions beginning In 1995, the indivIdual Touloumeses apprQached Plaintiff about advancing working capital for Kosta's end otherwise helping with financing for Kosta's, 10. At Defendants' request, Plalntl1f provided funding to JFK- T and the individual Touloumeses as follows: a. Between July 17, 1996 end June 2, 1999, Plaintiff provided cash loan. unsling $307,250.00, as listed in ExhIbit A attached hereto and Incorpol'Bted herein; b, Since October 10, 1995, Plalntlffhas made, and continues to make, interest payments on Loan No. 101-875-0009417 from Mellon Bank; as of January 10, 2001, said Interest paymentll, which are continuing to accrue monthly, totaled $21,090.41, as listed on Exhibit B attached hereto and incorporated herein; c. Fursuant to a Guaranty Agreement and a Fledge Agreement dated Auguet 28, 1995, Plaintiff gueranteed $300,000 of a mort;age note dated Augu8t 28, 1995. owed by Oef$ndantll to Commerce Bank, as c1ernon$tl'8led by Exhlblta 2 E'd SS2'~ wmEUU 'll ~o~ ddiN>l Wda<l:t <lOO<I'22.~t:lW -. J I ,. , J .. :) ~.;",.,; , ; '''jj,:L "~~ '. C (the Guaranty Agreement), D (the Pledge Agreement), and E (the mortgage note) attached hereto and incorporated herein; d. On or about June 26, 1998, Plaintiff posted interest-bearing account no. 410160207 at Commerce Bank as an overdraft checking protection/cash reserve account for Defendants' benefit under thejr loan no, 510021454, as amended, as shown on Exhibit F attached hereto and . incorporated herein; and to date, Defendants h.ave drawn approximately $25..0.0.0 on this account; e. On or about July 22, 1'998, Plaintiff substituted himself for the ~ - Defendants as the primary obligor to Commerce Bank. under a ,prior line of credit. Joan-to Defendants on which Plaintiff had. previou~ly been a guarantor based on . - -':-a.pfedge of's~CUrities; the current loall, No. 277f}59~; shOwn or1 Exhibit G . -.. - - .:::'_"_ .attac6eCl.hereto and incorporated h~rein;1s in !I:le p[incilj~lamount of .. - - ' . . . . . - - = - - . . . . - -. . $249,4.06.97, which iricludes more than $143;630.'70 of additional advances . made'by'CommercErto-Defendants'subseqtJent to-Jl:1ly22; 1998; some of which ,'.' was deposited into Kosta's general operating accounts and some of which was used to make payments on the mortgage to Commerce Bank for the Real Property on which Kosta's is located, which Real Property is owned by the individual Toulol.lmeses and on which mortgage the mortgagors and. primary oblig,ors are the individual Touloumeses; f. Since February 4, 1999, Plaintiff has made, and continue!l to make. interest payments on Loan No. 2776595 from Commerce Bank; as of November 3 ,., , ~ . , ".~"-- ~ ,-~ , ""'4,):-. 6, 2001 said interest payments, which are continuing to accrue monthly, totaled $72,252.69, as listed on exhibit H attached hereto and incorporated herein. 11, All of the above referenced advances and loans were made ~ the request of the Individual Touloumeses, 12. On various dates, Defendants tendered checl(s to Plaintiff as evidence of part of their indebtedness, requnting that Plaintiff hold the checks pending instructions frcm Defendants to deposit them for collection. 13, When Defendants tendered the aforementioned checks, they advised Plaintiff that the checks were not presently "good: i.e., Defendants did not then have sufficient funds to cover the checks, but that they would advise Plalntlff when they had sufficient funds to cover the checks; upon information and belief, the checks have never been "good: 14. Defendants have repeatedly acknOWledged their indebtedness and made promIses to Plaintiff to begin making payments, but no payments have been made. 15. Repayment of all amounts loaned Is presently due and owing. 16. Plaintiff has demandedrepaymant of the loana from Defendants, but . Defendants have failed or refused to repay the amounts owed. Piercina the CorDOrate Veil 17. JFK. T Is a sham corporation which Is merely a faqade for the operations of Its shareholders, the Individual Touloumes68. 18. JFK- T hu been. since hs Inception, grossly undercapitalized. Kosta's has operated wi1h virtually no working capital and Its working cheokIng aCllOUnt nlls bIen chronically 8lJbstantlally overdrawn, necessitating the borrowing of to pay operating 4 S'd 9.;J'CN WI1lEl~I '8 >l\:i:iO>l d"ol>! Wd12.1 20132'22'~ ~,cl_ --- '< . ---'-'" - - "" :.ii..~~- '. ~ , ~'liI1:U'"' , HAR.22.2802 2'28PH ~~p KODAK & rHBlUH /'/0,257 P,3 expenses: on multiple occasions it was unable to meet Its payroll from its payroll account. 19. JFK-T has not paid dividends In the regular and ordinary course of busjness; rather, JFK-T simply advances funds to the Individual Touloumeses on demand, without regald to (I) whether JFK-T is solvent, Ql) whether the advances are a proper use of corporate fundi, and (III) whether the advances rellect the share Interests of the shareholders. 20, JFK- T has failed to maintain proper corporate records. 21. The officers and directors of JFK.T do not ac.tually function. 22, One or more of the shareholders have used assets of the corporation fur personal Interests or expenses, including, but not Hmited to: a, Payment of e student loan: b. WIthdrawing money from the corporation for personal use; c. Channeling funds borrowed from Plaintiff by drawing on Plaintiff's Commerce Bank line of credit No. 2776696. to pay on the Commerce Bank mortgage owed by the individual sharsholdam; . d, Paytng down the Shareholders' mortgage with corporate funds. while the corporation wu not paying Its own debts; 8, Causing the corporation to acIvance money to James J. ToulotJmes, Jr. d/b/a T. Jimmy's Place for use in another restaurant solely owned by him; f, Making payments from Kosta's operating account to or for T. Jimmy's Place. 6 ,. ~ '.' i~ ~' _ ' _ . .J:: ~-i 23, One or more of thellhareholders have commIngled COrpolilte and personal funds and affairs by. Inter alia: a, Writing corporate checks to themselves for cash; b, Obtaining a Commerce Bank loan In their individual names fOr use by JFK-T In purchasing the llxtures and equipment, Ieaehold improvements. liquor license, and Inventory of1he restaurant which became Kosta's (fonner1y Casa Rlllo); c. Channeling funds borrowed from Plaintiff by drawing on Plalntift's Commerce Bank Dne of credit No. 2776595, both to make deposits in Kosta's general operating account and to pay on the Commerce Bank mortgage owed by the IndIvIdual shsre/'1olders. 24, Because the corporatlon Is merely the alter ego of the shareholders. the Individual shareholders are personally, jointly and sevelillly liable for the debts of JFK.T, Count I.. a...ach of Contract 25. The avemten18 of paragraphs 1.24 are Incorporated herein by reference. 26. Defendants enterecllnto a binding oral agreement uncler which Plaintlfl' provided funds to them as described ebove, and they agreed to repay aU amounts loaned. 27. Defendants ourr&ntly are jointly and severally Indebted to Plaintiff In the amount of $675,000.85 plus Interest WHEREFORE, Plaintiff demands judgment against Defendants. Jointly and sevelOllly, in the amount of $4375,000.85 plus Interest, coats of suit, and such other and further relief .. thl Court deems Juat. 6 .!.' d 9<;2 '(1.1 wrna~I ~ ~~o~ ddnN~ Wd22:1 2e82'22'~ ~ -, "6< ~. . , , ~ ~,~. '-',= 1ililI"''''Y~(lt&H Count 11- Promll!l8Orv Estoaael 28. The averments of paragraphs 1.24 and 27 are Incorporatld herein by reference. 29. Defendants requested loans from Plaintiff and promised repayment of 8uc;h lallns. which promises were intended to, and did. induce P1aintl1l'to make the loans to his financial detriment. 30, Defendants accepted the loans provided by Plaintiff. 31. Defendants acknowledged their debt to Plaintiff. 32. Defendants lIT8 estopped from denying their debt to Plaintiff. WHEREFORE, Plaintiff ctemands judgment against Defendants, Jointly and severally, In the amount of $675,000,85 plus Interest, costs of suit, and,such other and further relief as the Court deems Just. Count 111- Unlust Enrichment 33. The averments of paragraphs 1-24 and 27 are incorporated herein by reference. 34. Defendants received substantial monetary benefitl from Plaintiff. 35. Plaintiff provided financial benefits to Defendants with the expectation of being repaId, Bnd Defendants wera aware of Plalnlifl's expectation of repsyment. 36, Defendants wDl be unjustly enriched If they are not required to repay their debt to Plaintiff. 7 S'd 9S2'Q.l WrrmJI '8 >I1;C10>l dd1lJ>l WdZ2 : i 2002 '22 . ill:lW '!.lI' ie, - ~"~= . . ';=.s, '_ "'.&.' -'~"'-- WHEREFORE, Pleintift' demands Judgment against OefendBnts. jointly and severally, in the amount of $675,000.86 plus Interest, costs of suit, and such other and further relief as the Court deems just. McNEES WALLACE & NURICK LLC By' h,__ ~ ~.sL- ... James P. DeAngelo Supreme Court 1.0. 62377 Debra P. Fourtas Supreme Court 1.0. 62047 100 Pine Street P.O. Box 1168 Han1sburg, PA 17108-1166 717-232-8000 Date: November If. 2001 Attorneys for Plaintiff 8 6'd 9S2'a,j wn1aWI '8 lll:l(!Oll dd1N>l Wd02 .1 2002' 22' ~~ ,~ . " -- ~.~ - .. . _ A .J., -'''''\'' MCNEES,WRLL~CE.NU~ICK2 ID'i17-237-~300 NOU 09'01 .$:;';' No.012 P.O~ VIRIPlCATjON Subject to the peilaltlea of 18 Pa. C.S.A. ~904, relating 10 unsWOrn falslllcation to authoriliM. I hereby certify that I am B party to 11111 action and 1I11i1t the1.CIS set faith in the f<n9olncl document are true and c:ornaQt II' the beet or my knOWledge. infol'lTl8lloJ'l and beRer. /I ~~-x ^,Z~...J S ney D. Caplal'l Oeted: A/tlfI. / Y ,.2001 liH'd 9s:i1'~ wnl8WI ~ ~~o~ ddr~~ WdP2:. 2SB2'22'~~W 'f 'iL'" ~ - .1 , _ ..'"""~, ~~~""~""'" , ,~ '-""- " j ^"'t8&.h . // .. (C(Q)rPl( SYDNEY D. CAPLAN, Plaintiff v. : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 01-3215 CIVIL TERM JAMES J. TOULOUMES, JR., EFFRONSINII. TOULOUMES a/kla FROSO I. TOULOUMES, CONSTANTINE G.J. TOULOUMES, JAMES J. TOULOUMES, III and JFK-T GROUP, INC., : JURY TRIAL DEMANDED () 0 C' e- N ,I ~ .,., -gr;:. '"'1 ',. Uli:"', 01 :z :c' :zc I . ;..:.:1 ~..:-:' - ~..::~ : ;).... r::c u ';".~ ~c ~ .~::~ :>~ w ;':t:"tl 0 ~ ,'l ~ s:. -< PRAECIPE TO THE PROTHONOTARY COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA SUGGESTION OF BANKRUPTCY Please be advised thatJFK-T Group, Inc. filed for protection under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Middle District of Pennsylvania to No. 1-02-00446 on January 29, 2002. Respectfully submitted, ~ ~-:--. . ~~ Robert L. Knupp '. D Knupp, Kodak & Imblum, P.C. PO Box 11848 407 North Front Street Harrisburg, PA 17108 (717) 238-7151 ______,._.".'..._0..___'.. . ,~~ 0" ~M<'.~ ~"- / " . I' '*1 CERTIFICATE OF SERVICE .,.,.... -:r- ~13 :eu.A1Zi.( I hereby certify that on this the:1- day of.J..",,_.y, 2002, I placed in the United States Mail, postage prepaid the within document to the following: JAMES P. DeANGELO, ESQUIRE MCNEES, WALLACE & NURfCK, LLC PO BOX 1166 HARRISBURG, PA 17108-1166 ( ~Robert L. Knupp ~ ., '" . ~ . ~ :$l~ S~N iJ1 0 ::.] 91~ b' 1"1 .. N = .... s B ~ :. .s I ~il II! '. . ~]~.'~2 j~i I j L ~ e Jh. . J I i ~ B ~Ji ~ S' 0 t nil ~ j3 l!.l ~ ~ ~ . _0_< " _"". _ ~, "" l OJ . m'd 9S2'1~ _,u ~" ~" -!, - ."" ","'.- ~;":6'" wnnSWI ~ ~bQO~ dd1N~ WdSE:I 2Ba2'22'~ '~- -0- - :....- ., ,"~, ""--~,_.~": ..._-~ " . SYDNEY D, CAPLAN, Plaintiff v. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW JAMES J. TOULOUMES, :. JR., EFFRONSINI I. TOULOUMES a/kIa FROSO I. TOULOUMES, : CONSTANTINE G.J. TOULOUMES, JAMES J. : TOULOUMES, III, and JFK-T GROUP, INC., Defendants NO. 01-3215 CIVIL TERM IN RE: DEFENDANTS' PRELIMINARY OBJECTIONS TO PLAINTIFF'S COMPLAINT BEFORE HOFFER. P.I.. OLER and GUIDO. JJ. ORDER OF COURT AND NOW, this 1st day of April, 2002, upon consideration of Defendants' preliminary objections to Plaintiff's complaint, and it appearing that by order of court dated March 4, 2002, the Honorable Robert J. WOQdside authorized the continued prosecution of the present action by Plaintiff against Defendant JFK-T '6roup, Inc., debtor in a bankruptcy proceeding at No. 1-02-00446 RJW, United States Bankruptcy Court for the Middle District of Pennsylvania, and following oral argument held on March 27, 2002, the preliminary objections are denied, and Defendants are granted twenty days from the date of this order in which to file answers to Plaintiff's complaint. BY THE COURT, .__.,..._.____......_....d~...A_...~._ ...." ,.. " .~, '.n' . .~...~.- ..........~- . II ,. James P. DeAngelo, Esq. Debra P. Four/as, Esq, 100 Pine Street P.Q, Box 1166 Harrisburg, PA 17108-1166 Attorneys for Plaintiff Robert 1. Knupp, Esq. 407 North Front Street P.O. Box 11848 Harrisburg, PA 17108 Attorney for Defendants :rc " ~ ~ I ., '~;~W\*C ,- ,-"~,~, ~~ . I i. ~ @@[P)W SYDNEY 0, CAPLAN Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA vs, NO, 01-3215 CIVIL TERM c.. ?2r: ~> ..~ .. ...... , 5~;~ ,- :.<:.: ::<! JAMES J. TOULOUMES, JR., ET AL Defendants PRAECIPE TO ENTER APPEARANCE TO THE PROTHONOTARY: _,"",,'Jo'.! r:'J ; . ", -- .~,' 'M' I ~ n:: . .. .' :.-:-\ . ..~:.J C -< Enter our appearance on behalf of Defendants, JAMES 1. TOULOUMES, JR. and EFFRONSINI TOULOUMES aIkIa FOROSO I. TOULOUMES in the above matter and serve all papers upon us at the address listed below, Jacques H, Geisenberger, Jr., Esq. GEISENBERGER & COOPER, P.C, Lower Level - 45 East Orange Street Lancaster, P A 17602-2846 Dated: April 4, 2002 GElS By: es H. Geisenberger, Jr. mey for Defendant(s) ~S 1. TOULOUMES, JR. and EFFRONSINI I. TOULOUMES aIkIa FOROSO I. TOULOUMES Lower Level, 45 East Orange Street Lancaster, PAl 7602-2846 (717) 397-3500 I,D, No. 06947 The appearll!1ce ofGEISENBERGER & COOPER, P.C. entered for JAMES 1. TOULOUMES, JR, and EFFRONSINI !. TOULOUMES aIkIa FOROSO !. TOULOUM as above directed. Dated: April.J, 2002 2-00!165.LETI1 "'....~. - "~ " -,- ~,,' --' \Mid . -. " @@[P)11 SYDNEY 0, CAPLAN Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA vs. NO. 01-3215 CIVIL TER..'vb ~ ..... -.: :>~. f-:~ '::..' ('::~ r-'~l ~ -:J ,.' JAMES J. TOULOUMES, JR., ET AL Defendants I 0-:: - \ -, :",. . ~~.! PRAECIPE SUGGESTING BANKRUPTCY OF DEFENDANT JAMES J. TOULOUMES. JR. TO THE PROTHONOTARY: 7~ l ~., 1~~: z =< ", \", . ;.,-<. \c ;;~5 <., ~ -< Defendant, James J. Touloumes, Jr" one of the Defendants in the above Case filed for relief under Chapter 13 of the United States Bankruptcy Code on April 3,2002 with the United States Bank.n1ptcy Court for the Middle District of Pennsylvania, Case No.l-02-01793. A copy of the Petition is attached, Defendant suggests that this filing imposes a Stay of any further proceedings in the above Case under I1 U.S,C.A.g362(a)(l). Dated: April 4, 2002 GElS s H. Geisen rger, Jr. ey for Defendant( s) 5 J, TOULOUMES, JR. and ONSINI r. TOULOUrv.lES aIkIa F OSO 1. TOULOUMES Lower Level, 45 East Orange Street Lancaster, PA 17602-2846 (717) 397-3500 !.D. No, 06947 By: 20021611.ET(j ~. Q-- -~ ~~ -~~. , "~_.. -..... ~-"",..... '", ........~~ ~',ill:!llolil;l~':I!i/i!ilJ~'~" ."'il__ti~i'd'> . . . .........-. ..VllItt!U ~(ates tlanKruf.w,:y .....uurt rr"'fi"'" 'w' .' ""VAt ,., ..."..'p@'.................. ...... MIDDLE District of PENNSYLVANIA 1;' ~!)!;f:~::.1s~~,B~~~fjl:~;~;.;j~~~~~!f...r~:: '*Nalftf 01 DeblQr (of'I'Cl_"""t'",.,t.ilSI 1'''$1 Mt!lrn~~ I Name 01 JOtt'lt Oebtor 1~"KloI""~ICL'''1 F"'11 r.J~lei XoulOWZleS, Jr. , James J. tdba T. Ji.mmy's All other Names used by lhe Debtor in the last 6 years All Olhet Names used by the Joint Detllor In the last 6 years jNIf::...llltIIUlltlt"ll,m"'tdcrn ilnfJll;!(,l"IlOtI1IWI ,."r!III!tom.N'."" "'ArJ"-1 Alldlr.:ld.I"llfl6. NO~ ~@ ~V Soc. See iTax 1.0 -..---. ..--- n__ -_. No j.j""J:I':II,lfI'"IC'>!"U'.llli Sac Sl!C Tax I 0 No .' "'::1" 11...:1 .:::,' ~"',1:,. .'" 186-28-27'0/23-2l93191 Street Address 0' Deblor ;.:: !.~:,,.~ ", .....,Ij..~..:: :;~I:" Slree! Address ot JOint Deblor ~ .r. ?-:I,"'" :.t. .o!.:,....!':'.:ll.'o": 328 w. Old York Road I CARtISLE PA 17013 COlInI)' of Residence ar af the County 01 Residence or or the PrtnciOaI Place of Business. Cumberland Principal Place of Business Mailing Address of Debtor 1,1 '.ll!tf'f(l": "::'~' '01'1"'1 .K:'.lP<...\. MaIling Audr~s uf JOIIU Oebtor . '1-,'...... '.I~" '.r"..,: ."'1''''''.1 SA.MJ: location of Pnnc:pal Assels of Bussness Debtor .1' 'J'lf~",'''' "u'n ..11<.'11I: ,1~~1t"..\ "1:1O'''~; T, Jimmy's Place .5 w. Pine Streee 1 ... 02 01"Q~ Mt. Holly Spring FA 1706.5 - .....- .'" .. .....,:,.i'~;@!~t~tm~,~rppf.'~~~~;4fI;lQ!i~:~;~~p~g~!{~~~~:Jh~:4.p.p.!t.p.~@~f$.~~~~E;:;,2~~E;:;:flli::;,,'..J: ....' .. ...... :.:;::.;:....:; ... Ven.ue (Check any applicable box) ~ a.DlG( has been domiciled or has had a residence. principal place of business. 01 princip.ill s$Sets In U1I$ Omric! ~or 180 days immediately preceding the date 0' this petition or for a longer part 0' such 1 SO days lhan in any other District 0 The're is a bar.kruptcy case concerning debtors affiliate. genetal partner or partnership pending in lhis DiSlricl. Type of Oebtor (Check aM """.S lhatapply) Chapter at Section of Bankruptcy Code Under Which ~ Inc1Mdual(sl 0 Railroad the Petition i5 Filed (Check on. box) 0 CorporatIOn 0 Sloclcbroker 0 Chapter 1 0 Clllpter " ~ Chapter 1:) 0 F'artnershlp 0 CommOdity Bmker 0 Chapter 9 0 CJtapter 12 0 Other 0 See, 304 . Case ancillary to foreign proceeding Nalure ot Cebls [Check one bOtl Filing Fee (Check one box) 0 Cansumer.Non-Bu5tne5S ~ BUSiness ~. FUll Filing Fee attached cnapler 11 Smal18usiness (Cheek .,1 boxes 'h.lapply) 0 Friing Fee to be patd In Installments (App~C~ble to IndiVIduals only) 0 Debtor 1$ a small bUSiness as defined In 11 use S 101 Must aUacn sIgned applicahon fOt the c:ourfs conSldera!lon G Debtor is and eleers to be considered a slnall l1uSlness under certifying that the debtor is llflable to pay fee el(cept In in$tatlments 11 USC f 11211e) 10pllonall Rule l006Ih) See OffK:lal Form No 3. StalisticallAdminislrative Information rEslImat!S only) - .... .. .. ~. ~! ,~., .'.~:...' . . 0 Oeotot !'St\~ales thai fl,.\l~'$ .....cl( he l'JIllab!e [O! (1\S:;'nl,.lllOl\ to \1l\5i!Ct\reo ~!~IIOlS 8i Oet:l(OI eslrrn~fes that. after any exempl prapeny S e)(CI~ldl!d and ~dmlni$lrall'ie ellpenses rJald lhere. wtll t:e no funcs available fQt dlslrtb~:f:on ,0 unsecured .:::rechlors ~ '" = :J: .... = ....:,. ... '. '.... ," "'. :I.... '" .". EShmalcd N\llT1be! :>f Crly.tltcrs 0 ~ 0 0 0 0 .co ".. ~ -0 :0 ._- , ;;0 ~~ :Sltrnaled .\5~~t5 , .. . '-" Jr i: :~ , " .: ':~. 'r. ..n. .. _:. ~,,' :n ; :~,::;..),:..' '.' ~~; : :.... .:;. ',:r"..:o",.. ~rrJ '. .- , .... ., (..,..,1,.,,, !'.....1.:.. ~,~, '"'''''0.'' ~. :'.' .,. ..;;.. ::;:""10(1" , -0 ;1 0 ~ n n 0 0 0 n - == < E.s:,m31ed Oeols ~, J:" <". .. ill IV ~~:I00. ro "$lOO:O: Ie) S~.Y!,"l' \r. $\~':J:r.lfO H.'OO':'!\":' ~.. E,,~ .y"j i"). 10 '-10"" ~...,," to r:..:I -:ji':~C::: -;\1)(1.,,)'; ~~;;:.: \,'00 $1,'''11''1.1 SILi'~"focJn -;'''ll''''''eo. S''':iJ''''f100'' i:C'J,,,,,:.Oo' ~ ~ 0 0 ~ 0 0 0 0 0 ~ , r......~1i!I..' ._~~~,~w_ u..;"u""."" .~ ~~,~'-" .. ,',,,~, ~,",,~,..... ~h"" . -~"E' -".""""-<___=~~d, Voluntary Petition I Name 01 01llll0r(s)' .. FORMB1. P'-.2 (This page must Os completed and Ned In every case) . .."" ..... T'ouloumes Jr. James J, tdba T, .:J.Ii8ii' '$ , ...~~"~"~ ,.,,:;;l:!-:-;......,~.~~'" ~'WMt:trr:m:g_f.:~:>l;~"'" '~~~_~..., .~~.......>>l'(."..,.,~:...''''...'''':.:~.'':.;..;.:.:'~~<<''!I'''''''''....,..., ... .. Th\ ,', .. r'~H!! -r~I..!!!..!.gffu ", "6iY~dll ,<<<,' ,'.' "'"''''&1=''' ,',. fie... '\\l\;m;' ,_w~, 0 ..- .' ., ,"'.,., ..~, "',"".... ,.._,m~..,." .""......_w,.. '.."....."Y.("'L """... ,'~L".. '''''''1.... '''"M.'.... ,&*~-" =Jl'lflf.:" ~e':~\:~:::::'c".w..g~"~ll"..l\1I"'Woi1'i1'~'"W,ll)l&;";;"'1fi'e",;z;"'!rn('~=~:'ll::::lll.l"'>lmWm'~&~""~::'::W"*F=,"@:,"W.''''''''''''m" ..,;:d;~...u~r:~,~1t~:~'tmtJf&~~~I&~!$~~~~9~~~~,~;;..~:t~.n~!ie~d'm~1~$9~i~~~1t~~.~r.#m~.~?,!~~M-~~~~~.~Ji.!!!a,~i.f~Ift';:jWilitNm Name of Oebtor: Case. Number: Oate Fijed: NONE Dislricl Relationship: Judge: !!t;~ii!i;)ti!;!;Jllll'l~r6.t!i~111~111'II;f,ltillllr~'.1.lItlll~t~1~U~~':~'!~~lfltr;1~~'II~j;ii' Signarure(s) of Oebtor{s) (Individual/Joint I I deClare under pi!n3lty at perjury that the. informatiCln provided tn this petition is lrue, and correct. (It petItioner IS an individual whose debts are primarily consumer debts and has chosen 10 file under cnapl,er 71' am aware that I miy proceed under chapter 7, 1" 12, or 13 of atle 11, United SIa'.. C<XI., understand the relief a...aiable under each such chapter, and chclose to proceed under chapter 7, I request relief in accOfdance with the chapter of title 11. United States C;", Sp>lC=.liliOn. (P~ /t\ X !),.~~ 9 . 9 ~na\u1e d Jolnt Ceb\Ol" TecephQAe ft,!ucnaet (11 not tepreSCnlCd by .na,nlllvJ 0._ P.C, 45 East OranQ"e Street, Add,..U Lo'W'er Level Lanca5ter EA 17602-2846 (7171 397-3500 T"'r.ll'OtlltNl,irntler O.'P. Exhibit A {To be completed if debtor is requiredl0 file pencdic reports (e.g.. forms 1 OK and 100) wit/1 the Secuntles and Exchange CommiSSion pursuant to SeeMn 13 or 15(d) of the Securities Exchange Act of 1934 and is requesting relief under :hapter 11) o Exhibit A is attached and made a part 0' this petition. Exhibit B (To be competed if debtor is an Individual who$fi debts 8fe prImarIly consumer jebt'$\ I, lhe altorney for the petitioner named in the foregOIng petition declare that! nave Informed the petllioner thai (he or shej may plcceed under chapter i. II. 12. or 13 of litle 11, UnIted Stales Code. and ~ave explained the relief available under each suen cna~r7r X SignillUleol"IIDIIllt'fIol'OeUl:Ol('I' eo.. Sign;ature of Debtor (Corporatlon/Piilrtnership~ t declare under pt!'oait'f of periury that the information prO'Jtded in lhis t1etltion is true and correct. and that I have been authOriZed to file thiS pelition on behalf of the debtor The debtor requests relief in accOfdal'\ce with (he Chapter or title 11, United Stales Code, specified in this petillon. X S"lIaluf~ofAulhOl'<zltdrndMCIual PII/l\to NtIn& of AultlOlll" lnCllVlOual nee 01 AuchOllzed lndiYod\lll 0._ Signature 01 Non-Attorney Petition Pre,parer I certify that I am a bankruptcy petition preparer as defined in 11 U~S.C. S 110, that I prepared this document for compensation. and that I have provided the debtor with a copy of this dcx:ument. Premed Name or 8anJcfUplCy ;)ltlloon Preparei' Soclill Sec:UI'1Y NumCtl ACKlrUI Name! and Social Secunty numbers of all other indiYlduals who prepared or assisted in preparing thiS document: If more than one person prepared rl'lls document, aUach addihof1al sheets conforming to the appropriate offic:al form for each person. x 5I\1n6IUreQlaa"'llrtlote..~elol,o,,;:l'ItIl":" 0._ A bankruptcy petition prelJarer's failure to comply with the provisionS o( title 11 and the Federal Aules of Bankruptcy Procedure may result in "....or impnsonmen\ or OQIh" U.S.C. ~ 1\0: '8 US.C. ~ \58. ,,,,~ , u ., >- 0- J ;>:: or; ,., ~5 ',,- c':';' .~r LJ " .' t:! , ( <' .. .' '. J.=- . . ':j (~ - - ,- ...-.~) . ":) .- I ..:; I ,.:... '" . -... '..:-' c__ ;::;.. " -- t ..., ") L) '_..J t; t' ,. , ,,'.. I ,.- , ~~k:' - . ,," ~< ~.~ ""<~,: Curtis R. Long Prothonotary Renee K. Simpson Deputy Prothonotary John E. Slike Solicitor , QJ)f(ice of tbe f)rotbonotarp ([umberlanb ([ountp ~ 10: Court of Common Pleas Cumberland County, PennsYBanis. c ," s (_ -OeD c: Docket No. ()j- 3c1/si:~ ~ U.;\lieJ sk+eS !3~rh"f\-r Co..tr-J. . ~~. ;;;;: For +k jY),cJ.olk D,J,.,d- 6-1" pen(lsylva(\,q ~2 - :z :::2 cn ~ :~. -n -'\i~ 'G;::Q ~~'~~ ~; ~'.~:B ::;~C) ;~_,~ riO, -::::'j ~ -< Please acknowledge receipt of this case by signing and dating this document. Please send this back to: PROTHONOTARY OFFICE ..- CUMBERLAND COUNTY COURTHOUSE ONE COURTHOUSE SQUARE CARLISLE, PA 17013 Atto: Becky Record received: Date: (,;!lq /(j;Y ~/~~~~/rJ/~lra~ (sIgna e & tItle) . FllFD Harrisburg, PA '" T'V"_A.M,'PM r Ji~9 ~ Ck.l l\, f'J;;. ' ' 'hl ~'l-' _ Court Per One Courthouse Square' Carlisle, Pennsylvania 17013 . (717) 240-6195 . Fax (717) 240-6573 ~i\~* ill